Question
Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 900 units and
Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 900 units and of Product H9 is 900 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 | $ | 550,508 | 1,800 | 900 | 2,700 | |
Production orders | orders | 53,519 | 1,000 | 600 | 1,600 | ||
Order size | MHs | 836,116 | 3,700 | 3,400 | 7,100 | ||
$ | 1,440,143 | ||||||
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
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$407.78 per unit
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$929.07 per unit
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$484.12 per unit
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$1,600.13 per unit
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