Figure 7-4

Multiple Choice

Figure 7-4. Honeydew Company produces two products,a high end laptop computer under the label Bunsen Laptops,and an inexpensive desktop computer under the label Beaker Computers.The two products use two overhead activities,with the following costs:
The controller has collected the expected annual prime costs for each product,the machine hours,the setup hours,and the expected production.
Refer to Figure 7-4.Calculate the overhead cost per unit for each Beaker Computer,using overhead rates based on machine hours and setup hours.

A) $6.10 per unit
B) $4.50 per unit
C) $5.75 per unit
D) $3.88 per unit