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OLMO, INC., manufactures and sells two products: Product K0 and Product H9. The Annual production and sales product of K0 is 600 units and of
OLMO, INC., manufactures and sells two products: Product K0 and Product H9. The Annual production and sales product of K0 is 600 units and of Product H9 is 600 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
TB MC Qu. 4-103 Olmo, Inc., manufactures and sells ... 2 Olmo, Inc., manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of KO is 600 units and of Product H9 is 600 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Production orders Order size Activity Estimated Expected Activity Measures Overhead Cost Product KO Product H9 DLHS $ 550,408 6 6,000 3 3,000 orders 53,419 700 600 MHS 836,016 3,800 3,000 $1,439,843 Total 9,000 1,300 6,800 The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice O $305.80 per unitStep by Step Solution
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