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In: Accounting

Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing...

Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost and cost drivers per activity for the year 20x9:

Activity

Budgeted Cost

Cost Base

Cost Base Volume

Assembly

$861050

# of DL hours

36332

Inspection

$669581

# of units

20525

Plaid Manufacturing has budgeted to produce 3,000 units of G1. G1 requires 17790 hours of direct labour.

What is the overhead cost per unit for product G1?

Select one:

a. $510.21

b. $141.31

c. $173.16

d. $140.54

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