Onstad,Inc. ,manufactures and sells two products: Product E5 and Product C0.Expected production of Product E5 is 500 units and of Product C0 is 400 units.The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The overhead applied to each unit of Product C0 under activity-based costing is closest to:
A)$463.14 per unit
B)$591.77 per unit
C)$327.41 per unit
D)$622.23 per unit

Question

Onstad,Inc. ,manufactures and sells two products: Product E5 and Product C0.Expected production of Product E5 is 500 units and of Product C0 is 400 units.The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  The overhead applied to each unit of Product C0 under activity-based costing is closest to:
A)$463.14 per unit 
B)$591.77 per unit 
C)$327.41 per unit 
D)$622.23 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3345_6cff_908b_13f007b0d10d_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_3345_6d00_908b_bb21a4f63e81_TB2461_00