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Olmo, Inc, manufactures and sells two products: Product KO and Product H9. The annual production and sales of Product of KO i

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Answer #1
Activity cost pool Activity rate
Labor related 61.06 =549508/9000
Production orders 43.77 =52519/1200
Order size 143.99 =835116/5800
Activity cost pool Product K0
Labor related 366360 =6000*61.06
Production orders 30639 =700*43.77
Order size 431970 =3000*143.99
Total overhead cost 828969
Divide by Units 600
Overhead applied to each unit 1381.62
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