Multiple Choice
Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:
-Refer to Exhibit 3-1.What is the overhead cost per unit for Sports Light when all overhead is applied based on machine hours?
A) $9.00
B) $2.00
C) $13.62
D) $3.60
E) None of the answer choices is correct.
Correct Answer:

Verified
Correct Answer:
Verified
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