Machuga,Inc

question 116

Multiple Choice

Machuga,Inc. ,manufactures and sells two products: Product C1 and Product M2.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 $18.70 per DLH.The direct materials cost per unit is $297.00 for Product C1 and $246.20 for Product M2. 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 M2 under activity-based costing is closest to:

• A)$1,118.13 per unit
• B)$1,013.40 per unit
• C)$1,122.22 per unit
• D)$647.22 per unit

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