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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
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$333.30 per unit
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$724.01 per unit
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$356.75 per unit
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$261.52 per unit
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