Exhibit 3-1 Hydrate Inc.makes Two Types of Sports Drinks and Is Implementing

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 Thirst Quench using ABC?

A) $2.00
B) $0.86
C) $0.45
D) $0.50
E) None of the answer choices is correct.