Sampaga,Inc. ,manufactures and sells two products: Product S6 and Product U3.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $20.90 per DLH.The direct materials cost per unit is $145.30 for Product S6 and $221.50 for Product U3. The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The overhead applied to each unit of Product U3 under activity-based costing is closest to:
A)$388.88 per unit
B)$473.11 per unit
C)$482.85 per unit
D)$90.35 per unit

Question

Sampaga,Inc. ,manufactures and sells two products: Product S6 and Product U3.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:  The direct labor rate is $20.90 per DLH.The direct materials cost per unit is $145.30 for Product S6 and $221.50 for Product U3. The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  The overhead applied to each unit of Product U3 under activity-based costing is closest to:
A)$388.88 per unit 
B)$473.11 per unit 
C)$482.85 per unit 
D)$90.35 per unit

Quizplus · Accepted Answer

Computation of activity rates:
 11eaa3fe_3388_69db_908b_0d4e1271abc4_TB2461_00 Computation of the overhead cost per unit under activity-based costing.
 11eaa3fe_3388_90ec_908b_a178e0ca2350_TB2461_00