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Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2,400 units, while 1.100 units of blenders are produced

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Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2,400 units, while 1.100 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $148,015. The company is looking at the possibility of changing to an activity - based costing system for its products. If the company used an activity based costing system, it would have the following three activity cost pools: Expected activity Estimated Activity cost pool overhead cost Toasters Blenders Total Setup costs $8,285 205 batches 440 batches 645 batches Engineering costs $68,980 900 engineering 800 engineering hours 1.700 engineering hrs Maintenance costs $70,750 2,740 direct labor hours 1,095 direct labor hours 3,835 direct labor hours Total $148,015 O A. $24.30 O B. $134.56 O C. $53.01 OD. $81.55 TUU USUI VIENUS U pivuucou au dulu. The palyd UUTISHU UUU UUE DUI HUUID W alu Veru u PIUUULIS. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $148,015. The company is looking at the possibility of changing to an activity-based costing system for its products. If the compan used an activity - based costing system, it would have the following three activity cost pools: Expected activity Estimated Activity cost pool overhead cost Toasters Blenders Total Setup costs $8,285 205 batches 440 batches 645 batches Engineering costs $68,980 900 engineering 800 engineering hours 1,700 engineering hrs Maintenance costs $70,750 2,740 direct labor hours 1,095 direct labor hours 3,835 direct labor hours Total $148,015 The overhead cost per blender using an activity - based costing system would be closest to (Round all answers to two decimal places.) O A. $24.30 B. $134.56 C. $53.01 D. $81.55

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