Onstad, Inc., manufactures and sells two products: Product E5 and Product C0. Expected production of Product E5 is 500 units and of Product C0 is 400 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product C0 under activity-based costing is closest to:
A)$463.14 per unit
B)$591.77 per unit
C)$327.41 per unit
D)$622.23 per unit

Question

Onstad, Inc., manufactures and sells two products: Product E5 and Product C0. Expected production of Product E5 is 500 units and of Product C0 is 400 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The overhead applied to each unit of Product C0 under activity-based costing is closest to:
A)$463.14 per unit 
B)$591.77 per unit 
C)$327.41 per unit 
D)$622.23 per unit

Quizplus · Accepted Answer

The Answer of Onstad, Inc., manufactures and sells two products: Product E5 and Product C0. Expected production of Product E5 is 500 units and of Product C0 is 400 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The overhead applied to each unit of Product C0 under activity-based costing is closest to:
A)$463.14 per unit 
B)$591.77 per unit 
C)$327.41 per unit 
D)$622.23 per unit