Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:

-Refer to Exhibit 3-1.What is the overhead cost per unit for Sports Light when all overhead is applied based on machine hours?
A)$9.00
B)$2.00
C)$13.62
D)$3.60
E)None of the answer choices is correct.

Question

Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:
 
-Refer to Exhibit 3-1.What is the overhead cost per unit for Sports Light when all overhead is applied based on machine hours?
A)$9.00 
B)$2.00 
C)$13.62 
D)$3.60 
E)None of the answer choices is correct.

Quizplus · Accepted Answer

The Answer of Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:
 
-Refer to Exhibit 3-1.What is the overhead cost per unit for Sports Light when all overhead is applied based on machine hours?
A)$9.00 
B)$2.00 
C)$13.62 
D)$3.60 
E)None of the answer choices is correct.

Exhibit 3-1 Hydrate Inc.makes Two Types of Sports Drinks and Is Implementing