Figure 7-4

question 57

Multiple Choice

Figure 7-4.Honeydew Company produces two products, a high end laptop computer under the label Bunsen Laptops, and an inexpensive desktop computer under the label Beaker Computers. The two products use two overhead activities, with the following costs:
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.
-Refer to Figure 7-4. Calculate the overhead cost per unit for each Beaker Computer, using overhead rates based on machine hours and setup hours.

• A) $6.10 per unit
• B) $4.50 per unit
• C) $5.75 per unit
• D) $3.88 per unit

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Definitions:

Face Value

The nominal or dollar value printed on a bond, share, or other financial instrument, representing its value at issuance.

Bond Premium

The amount by which the market price of a bond exceeds its face value, typically occurring when the bond's interest rate is higher than current market rates.

Fair Value Through Profit

A financial accounting treatment where changes in fair value of assets or liabilities are recorded in the profit or loss for the period.