Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 1,000 units and of Product H9 is 1,000 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	$	549,808		2,000	1,000	3,000
Production orders	orders		52,819		1,100	600	1,700
Order size	MHs		835,416		3,400	3,600	7,000
		$	1,438,043

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

rev: 03_25_2018_QC_CS-119201

Multiple Choice

• $366.54 per unit

• $806.51 per unit

• $405.79 per unit

• $1,438.08 per unit

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