Sampaga, Inc

question 34

Multiple Choice

Sampaga, Inc., manufactures and sells two products: Product S6 and Product U3. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $20.90 per DLH. The direct materials cost per unit is $145.30 for Product S6 and $221.50 for Product U3. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product U3 under activity-based costing is closest to:

• A)$388.88 per unit
• B)$473.11 per unit
• C)$482.85 per unit
• D)$90.35 per unit