The overhead applied to each unit of Product W5 under activity-based costing is closest to:

A) $718.73 per unit
B) $626.24 per unit
C) $521.89 per unit
D) $480.62 per unit

Question

The overhead applied to each unit of Product W5 under activity-based costing is closest to:A) $718.73 per unitB) $626.24 per unitC) $521.89 per unitD) $480.62 per unit

Keeva Mahoney · Accepted Answer

Final Answer : A, Explanation :  Computation of activity rates:   Computation of the overhead cost per unit under activity-based costing.   Reference: CH04-Ref19Chhom, Inc., manufactures and sells two products: Product F9 and Product U4.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 $27.80 per DLH.The direct materials cost per unit is $271.90 for Product F9 and $272.20 for Product U4.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 W5 under activity-based costing is closest to:

A) $718.73 per unit
B) $626.24 per unit
C) $521.89 per unit
D) $480.62 per unit

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