Question
SIM Power Ltd., manufactures and sells two products: Product K1 and Product S6. Data concerning the expected production of each product and the expected total
SIM Power Ltd., manufactures and sells two products: Product K1 and Product S6. Data concerning the expected production of each product and the expected total direct labour-hours (DLHs) required to produce that output appear below: Expected Production Direct Labour-Hours Per Unit Total Direct Labour-Hours Product K1 500 8.0 4,000 Product S6 100 5.0 500 Total direct labour-hours 4,500 The company is considering adopting 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 K1 Product S6 Total Labour-related DLHs $127,485 4,000 500 4,500 Production orders orders 27,820 400 600 1,000 General factory MHs 452,868 4,000 3,800 7,800 $608,173 The overhead cost assigned to each unit of Product S6 under activity-based costing is closest to: Group of answer choices $562.95 per unit $2,514.85 per unit $2,107.50 per unit $713.38 per unit
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