Question
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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