Question

Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 900 units and of Product H9 is 900 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Activity Cost Pools	Activity Measures	Estimated Overhead Cost			Expected Activity
					Product K0	Product H9	Total
Labor-related	DLHs	$	550,208		5,400	2,700	8,100
Production orders	orders		53,219		1,000	600	1,600
Order size	MHs		835,816		3,100	4,000	7,100
		$	1,439,243

The overhead applied to each unit of Product K0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

rev: 03_25_2018_QC_CS-119201

Multiple Choice

• $407.58 per unit

• $850.02 per unit

• $405.48 per unit

• $533.06 per unit

Answer 1

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