Betenbaugh,Inc. ,manufactures and sells two products: Product E4 and Product L8.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 $29.00 per DLH.The direct materials cost per unit is $223.90 for Product E4 and $122.30 for Product L8. 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 L8 under activity-based costing is closest to:
A)$1,649.96 per unit
B)$1,100.40 per unit
C)$1,596.72 per unit
D)$896.50 per unit

Question

Betenbaugh,Inc. ,manufactures and sells two products: Product E4 and Product L8.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 $29.00 per DLH.The direct materials cost per unit is $223.90 for Product E4 and $122.30 for Product L8. 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 L8 under activity-based costing is closest to:
A)$1,649.96 per unit 
B)$1,100.40 per unit 
C)$1,596.72 per unit 
D)$896.50 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3386_bc1e_908b_9d97f9daaaf4_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_3386_e32f_908b_8b6baed694c6_TB2461_00