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MC Question 18

A company manufactures two products, C and D, for which the following information is available:
Product C Product D Total
Budgeted production (units) 1,000 4,000 5,000
Labour hours per unit/in total 8 10 48,000
Number of production runs required 13 15 28
Number of inspections during production 5 3 8
Total production set up costs $140,000
Total inspection costs $80,000
Other overhead costs $96,000

Other overhead costs are absorbed on the basis of labour hours per unit.

Using activity-based costing, what is the budgeted overhead cost per unit of product D?

A. $43·84
B. $46·25
C. $131·00
D. $140·64