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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 | $ | 551,008 | 8,800 | 4,400 | 13,200 | |
Production orders | orders | 54,019 | 1,200 | 200 | 1,400 | ||
Order size | MHs | 836,616 | 3,500 | 2,700 | 6,200 | ||
$ | 1,441,643 | ||||||
The overhead applied to each unit of Product H9 under activity-based costing is closest to:
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