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Bewig, Inc., manufactures and sells two products: Product E8 and Product R4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:       Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost  Product E8  Product R4  Total Labour-related DLHs $201,717 4,800 4,500 9,300 Machine setups setups 69,020    400    300    700 General factory MHs   140,553 3,300 3,000 6,300     $411,290       Bewig produces 10,000 of E8 and 15,000 of R4 annually.    The overhead applied to each unit of Product E8 under activity-based costing is closest to: Question 11 options:   1)  $3.94   2)  $19.41   3)  $41.13   4)  $21.72

Bewig, Inc., manufactures and sells two products: Product E8 and Product R4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:       Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost  Product E8  Product R4  Total Labour-related DLHs $201,717 4,800 4,500 9,300 Machine setups setups 69,020    400    300    700 General factory MHs   140,553 3,300 3,000 6,300     $411,290       Bewig produces 10,000 of E8 and 15,000 of R4 annually.    The overhead applied to each unit of Product E8 under activity-based costing is closest to: Question 11 options:   1)  $3.94   2)  $19.41   3)  $41.13   4)  $21.72

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bewig, Inc., manufactures and sells two products: Product E8 and Product R4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
 

    Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost  Product E8  Product R4  Total
Labour-related DLHs $201,717 4,800 4,500 9,300
Machine setups setups 69,020    400    300    700
General factory MHs   140,553 3,300 3,000 6,300
    $411,290      


Bewig produces 10,000 of E8 and 15,000 of R4 annually. 
 
The overhead applied to each unit of Product E8 under activity-based costing is closest to:

Question 11 options:

 

1) 

 $3.94
 

2) 

 $19.41
 

3) 

 $41.13
 

4) 

 $21.72
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