Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 1,000 units and of Product H9 is 1,000 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity |
| Product K0 | Product H9 | Total |
| Labor-related | DLHs | $ | 549,408 | | 10,000 | 5,000 | 15,000 |
| Production orders | orders | | 52,419 | | 1,100 | 200 | 1,300 |
| Order size | MHs | | 835,016 | | 2,800 | 3,200 | 6,000 |
| | | $ | 1,436,843 | | | | |
|
The overhead applied to each unit of Product K0 under activity-based costing is closest to:
Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| | | Estimated | Expected Activity |
| Activity Cost Pools | Activity Measures | Overhead Cost | Product Q5 | Product J0 | Total |
| Labor-related | DLHs | $ | 191,748 | 3,000 | 2,800 | 5,800 |
| Production orders | orders | | 70,536 | 300 | 500 | 800 |
| Order size | MHs | | 295,592 | 4,300 | 4,500 | 8,800 |
| | | $ | 557,876 | | | |
|
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| | | Estimated | Expected Activity |
| Activity Cost Pools | Activity Measures | Overhead Cost | Product Z1 | Product Z8 | Total |
| Labor-related | DLHs | $ | 112,190 | 600 | 2,000 | 2,600 |
| Machine setups | setups | | 40,440 | 500 | 700 | 1,200 |
| Order size | MHs | | 609,770 | 3,000 | 3,200 | 6,200 |
| | | $ | 762,400 | | | |
|
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
