Drucker,Inc. ,manufactures and sells two products: Product F0 and Product M6.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: 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 M6 under activity-based costing is closest to:
A)$443.10 per unit
B)$457.59 per unit
C)$480.04 per unit
D)$168.17 per unit

Question

Drucker,Inc. ,manufactures and sells two products: Product F0 and Product M6.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:  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 M6 under activity-based costing is closest to:
A)$443.10 per unit 
B)$457.59 per unit 
C)$480.04 per unit 
D)$168.17 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3344_8299_908b_a16fd1a6cd08_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_3344_829a_908b_41e3a49c3b88_TB2461_00