FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Olmo, Incorporated, manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 600 units and of Product H9 is 600 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools | Activity Measures | Estimated |
Expected Activity | ||
---|---|---|---|---|---|
Product K0 | Product H9 | Total | |||
Labor-related | DLHs | $ 550,908 | 3,600 | 1,800 | 5,400 |
Production orders | orders | 53,919 | 700 | 400 | 1,100 |
Order size | MHs | 836,516 | 4,000 | 3,100 | 7,100 |
$ 1,441,343 |
The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
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