The Overhead Applied to Each Unit of Product W2 Under

question 26

Multiple Choice

The overhead applied to each unit of Product W2 under activity-based costing is closest to:

• A)$2,286.58 per unit
• B)$1,126.79 per unit
• C)$995.09 per unit
• D)$1,825.00 per unit

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds.

Current Liabilities

Obligations or debts that a company must pay within one year or within its normal operating cycle if longer.

Interest-Bearing Notes

Debt securities that pay interest to the holder at a fixed or variable rate until maturity.

Operating Cycle

The duration between the purchase of inventory and the collection of accounts receivable generated from sales.