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Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 1,100 units and

Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 1,100 units and of Product H9 is 1,100 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity
Product K0 Product H9 Total
Labor-related DLHs $ 549,908 11,000 5,500 16,500
Production orders orders 52,919 1,200 500 1,700
Order size MHs 835,516 3,100 3,500 6,600
$ 1,438,343

The overhead applied to each unit of Product K0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

  • $333.30 per unit

  • $724.01 per unit

  • $356.75 per unit

  • $261.52 per unit

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