The overhead applied to each unit of Product W5 under activity-based costing is closest to:
A)$718.73 per unit
B)$626.24 per unit
C)$521.89 per unit
D)$480.62 per unit

Question

Quizplus · Accepted Answer

Computation of activity rates: 11ea7998_5eb2_fe47_911b_fd3abc663e96_TB2627_00_TB2627_00 Computation of the overhead cost per unit under activity-based costing. 11ea7998_5eb2_fe48_911b_d912a7fa47ad_TB2627_00_TB2627_00 Reference: CH04-Ref19
Chhom, Inc., manufactures and sells two products: Product F9 and Product U4.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: 11ea7998_5eb3_2559_911b_e18b99a8dad6_TB2627_00_TB2627_00 The direct labor rate is $27.80 per DLH.The direct materials cost per unit is $271.90 for Product F9 and $272.20 for Product U4.
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 11ea7998_5eb3_255a_911b_77f3d1167203_TB2627_00_TB2627_00

The Overhead Applied to Each Unit of Product W5 Under