CompIncCompInc -Refer to CompInc

Multiple Choice

CompInc.CompInc. produces two products: a high-end laptop computer and an inexpensive laptop. The two products use two manufacturing overhead activities, which have the following costs:
Setting up equipment $8,000
Machining 48,000
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production. $\begin{array}{lrr}&\text { High-end}&\text { Inexpensive }\\\text { Direct Labour } & \$ 24,000 & \$ 8,000 \\\text { Direct Materials } & 15,000 & 4,000 \\\text { Units } & 2,000 & 2,000 \\\text { Machine Hours } & 1,000 & 3,000 \\\text { Sebup Hours } & 150 & 50\end{array}$
-Refer to CompInc. What is the manufacturing overhead cost per unit for high-end laptops when using a plantwide rate that is based on direct labour costs?

A) $7.00 per laptop
B) $10.00 per laptop
C) $14.00 per laptop
D) $21.00 per laptop