Olmo, Incorporated, manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of KO is 1,200 units and of Product H9 is 1,200 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Overhead Cost Product KO Product H9 Total $ 549,708 14,400 52,719 1,500 835,316 7,000 $ 1,437,743 The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Activity Cost Pools Labor-related Production orders Order size Multiple Choice Activity Measures DLHS orders Mis 9,600 1,300 3,100 4,800 200 3,900

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Godo

8
Olmo, Incorporated, manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of KO is 1,200 units
and of Product H9 is 1,200 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
Multiple Choice
$152.68 per unit
$546 36 per unit
Activity
Measures
DLHS
orders
MHS
52,719
835,316
$ 1,437,743
The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
$38782 per unt
Estimated
Expected Activity
Overhead Cost Product KO Product H9
$ 549,708
9,600
1,300
3,100
Total
4,800
14,400
200 1,500
3,900 7,000
Transcribed Image Text:8 Olmo, Incorporated, manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of KO is 1,200 units and of Product H9 is 1,200 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 Multiple Choice $152.68 per unit $546 36 per unit Activity Measures DLHS orders MHS 52,719 835,316 $ 1,437,743 The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) $38782 per unt Estimated Expected Activity Overhead Cost Product KO Product H9 $ 549,708 9,600 1,300 3,100 Total 4,800 14,400 200 1,500 3,900 7,000
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education