Frogge,Inc. ,manufactures and sells two products: Product H0 and Product N3.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $23.60 per DLH.The direct materials cost per unit is $160.60 for Product H0 and $240.30 for Product N3. The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The overhead applied to each unit of Product H0 under activity-based costing is closest to:
A)$647.44 per unit
B)$646.66 per unit
C)$389.91 per unit
D)$714.90 per unit

Question

Frogge,Inc. ,manufactures and sells two products: Product H0 and Product N3.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:  The direct labor rate is $23.60 per DLH.The direct materials cost per unit is $160.60 for Product H0 and $240.30 for Product N3. The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  The overhead applied to each unit of Product H0 under activity-based costing is closest to:
A)$647.44 per unit 
B)$646.66 per unit 
C)$389.91 per unit 
D)$714.90 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3351_a258_908b_67ed76782fc7_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_3351_a259_908b_4fb505d585e7_TB2461_00