FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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.)
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Transcribed Image Text: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.)
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