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Required 1. Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 700

Required 1. Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 700 units and of Product H9 is 700 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 $ 549,308 5,600 2,800 8,400
Production orders orders 52,319 800 400 1,200
Order size MHs 834,916 3,000 3,300 6,300
$ 1,436,543

The overhead applied to each unit of Product K0 under activity-based costing is closest to?

Required 2. Olmo, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product T8 Product P4 Total
Labor-related DLHs $ 109,500 2,000 1,000 3,000
Production orders orders 51,640 1,100 600 1,700
Order size MHs 807,690 3,400 3,600 7,000
$ 968,830

The total overhead applied to Product P4 under activity-based costing is closest to?

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