Sheen CoManufacturers Laser Printers

question 67

Multiple Choice

Sheen Co.manufacturers laser printers.It has outlined the following overhead cost drivers:
Sheen Co.has an order for 1,000 laser printers that has the following production requirements:
What is the total overhead cost per unit of the laser printer order using activity-based costing (rounded to the nearest cent) ?

• A)$39.55.
• B)$40.05.
• C)$42.25.
• D)$50.65.
• E)$58.30.

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Definitions:

Cost Pools

Groups of individual costs combined to allocate costs more efficiently.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming for more accurate product costing.

Order Processing

The activities involved in receiving, handling, and fulfilling customer orders, from initial receipt through delivery.

Idle Capacity

The portion of a company's resources or assets that is underused or not producing income, often leading to inefficiencies and increased costs.