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13)

Bond Company uses a plantwide overhead rate with direct labor hours as the allocation base. Use the following information to solve for the amount of direct labor hours estimated per unit of product G2.

Direct material cost per unit of G2	$	13
Total estimated manufacturing overhead	$	312,000
Total cost per unit of G2	$	28
Total estimated direct labor hours		156,000	DLH
Direct labor cost per unit of G2	$	4.85

Multiple Choice

5.08 DLH per unit of G2.

17.85 DLH per unit of G2.

8.60 DLH per unit of G2.

0.52 DLH per unit of G2.

2.00 DLH per unit of G2.

14)

A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

				Budgeted Activity
Activity Cost Pool	Budgeted Cost			Product A			Product B
Activity 1	$	101,000			4,400			4,200
Activity 2	$	76,000			5,900			6,900
Activity 3	$	121,000			3,900			6,650

Annual production and sales level of Product A is 35,700 units, and the annual production and sales level of Product B is 70,950 units. What is the approximate overhead cost per unit of Product A under activity-based costing?

Multiple Choice

$3.68

$10.27

$11.74

$1.60

$2.35

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