A Company produced 80,900 units during its first year of operations and sold 77,100 at 21.60 per unit. The company chose practical activity-at 80,900 units to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials 457,085 87,372 Direct labor Expected and actual variable overhead 300,139 Expected and actual fixed overhead 432,006 Calculate the unit cost and the cost of finished goods inventory under absorption costing and calculate the unit cost and the cost of finished goods inventory under variable costing.

1. Compute the product margins for the XT-100 and LT-200 under the company’s traditional costing system. 2. Compute the product margins for XT-100 and LT-200 under the activity-based costing system.

Olmo, Incorporated, manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of KO 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 Labor-related Production orders: Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $ 550, 208 53, 219 835,816 $ 1,439, 243 Expected Activity Product Ke Product H 5,400 1,000 3,100 2,700 600 4,000 Total 8,100 1,690 7,100 The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Activity Cost Pool Labor-related Purchase orders Parts management Board etching General factory Activity Measure Direct labor-hours Number of orders Number of part types Number of boards Machine-hours Expected Overhead Cost $ 284,000 $ 6,790 $ 71,340 $ 57,900 $ 229,900 Product A 3,000 43 22 530 3,600 Expected Activity 35,500 DLHS Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: 194 orders 82 part types 1,930 boards 20,900 MHs Expected Activity Product B 22,800 Activity Cost Pool Product C Product D 3,900 5,800 Labor-related (DLHS) Purchase orders (orders) 20 48 83 Parts management (part types) 15 32 13 Board etching (boards) 750 650 0 General factory (MHS) 7,300 3,900 6,100 Using the…