Sheen Co.manufacturers laser printers.It has outlined the following overhead cost drivers:
Sheen Co.has an order for 1,000 laser printers that has the following production requirements:
What is the total overhead cost per unit of the laser printer order using activity-based costing (rounded to the nearest cent)?
A)$39.55.
B)$40.05.
C)$42.25.
D)$50.65.
E)$58.30.

Question

Sheen Co.manufacturers laser printers.It has outlined the following overhead cost drivers: 
Sheen Co.has an order for 1,000 laser printers that has the following production requirements: 
What is the total overhead cost per unit of the laser printer order using activity-based costing (rounded to the nearest cent)?
A)$39.55. 
B)$40.05. 
C)$42.25. 
D)$50.65. 
E)$58.30.

Quizplus · Accepted Answer

To calculate the overhead cost per unit using activity-based costing, we need to first calculate the total overhead cost for each activity and then allocate them to the units based on the activity usage.

Total overhead cost for each activity:
- Activity 1: $8,000 + $1.5 * 1,000 = $9,500
- Activity 2: $6,000 + $2.5 * 1,000 = $8,500
- Activity 3: $12,000 + $4.5 * 1,000 = $16,500
- Activity 4: $14,000 + $1 * 1,000 = $15,000

Total overhead cost = $9,500 + $8,500 + $16,500 + $15,000 = $49,500

Overhead cost per unit = Total overhead cost / Number of units
= $49,500 / 1,000
= $49.50

Therefore, the total overhead cost per unit of the laser printer order using activity-based costing is $39.55. The best choice would be B.

Sheen CoManufacturers Laser Printers