Question

Langos Company manufactures two products, S and R. Data concerning the current period's operations are given below Estimated volume Direct materials cost per unit Direct labour cost per unit Product S 5032 units $9.94 Product R 2089 units $6.62 $18.07 $13.75 The company uses an activity-based costing system, with three activity cost pools, to allocate overhead. Data relating to these activities for the current period are given below Activity Estimatea OverheadProduct SProduct R Expected Activity Cost Pool Costs Maintenance Inspection General Factory $77727 35802 106606 94 157 4144 108 2088 What is the overhead cost per unit of Product R for the current period? Sdlect one: a. $40.22 b. $66.00 ic. $27.0s d. $60.59

Answer 1

Overhead cost per unit a) $40.22
Statement showing computations
Particulars	Amount a	No of Activity b	Cost per activity c= a/b	No of Activity of Product R d	Cost Allocated to R c*d
Maintenance	77,727.00	166.00	468.23	72.00	33,712.92
Inspection	35,802.00	265.00	135.10	108.00	14,591.00
General factory	106,606.00	6,232.00	17.11	2,088.00	35,717.80
Total Overhead	220,135.00				84,021.72
No of units					2,089.00
Overhead Cost per unit					40.22