Answer:
Per unit is closest to $ 38.63
Explanation:
Computation of Overhead costs
<u>Activity 1 overhead costs on Product Deluxe</u>
Total Costs $ 30,552
Total on Product Basic 1,200
Total on Product Deluxe 800
Total on Product Deluxe = 800/2000 * $ 30,552 $ 12,221
<u>Activity 2 overhead costs on Product Deluxe</u>
Total Costs $ 17,415
Total on Product Basic 1,900
Total on Product Deluxe 400
Total on Product Deluxe = 400/2300 * $ 17,415 $ 3,029
<u>General Factory Activity overhead costs on Product Deluxe</u>
Total Costs $ 50,918
Total on Product Basic ( 1,600 units *.4) 640
Total on Product Deluxe ( 1,200 units * .8) 960
Total on Product Deluxe = 960/1600 * $ 50,918 <u>$ 30.131</u>
Total Overheads on Product Deluxe on activity based $ 45,380
Total production of Product Deluxe 1,200
Per unit cost of production Deluxe $ 37.82
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