In: Accounting
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