Exhibit 3-1 Hydrate Inc.makes Two Types of Sports Drinks and Is Implementing

question 13

Multiple Choice

Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:

-Refer to Exhibit 3-1.What is the overhead cost per unit for Sports Light when all overhead is applied based on machine hours?

• A)$9.00
• B)$2.00
• C)$13.62
• D)$3.60
• E)None of the answer choices is correct.

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