Answer:
The answer is option (b)$42.50
Explanation:
Solution
Given that:
Temple Lighting
Calculation of ABC rates:
Allocation table A B C=A*B
Activity cost pool Cost Driver ABC Rates Activity use Cost assigned
Assembly Direct Labor Hour 10.00 1.5 15.00
Design Number of option 12.50 2.00 25.00
Packaging Units produced 2.50 1.00 2.50
TOTAL:
15.00 + 25.00 +2.50 =$42.50
Therefore the Temple Lighting’s overhead cost per unit of product is $42.50
