Use the following information to answer questions.

Viva Electronics produces and sells two products, VE1 and VE2. Viva incurred $168,000 overhead costs in a single cost pool. Viva allocates the overhead cost to each product based on the machine hours. The cost accountant gathered the following additional information about the overhead costs:

What is the overhead cost per unit using activity based costing?
    VE1 ..............................VE2
a. $42.00.........................$84.00
b. $67.86........................ $66.76
c. $77.00........................ $61.00
d. $84.00........................ $56.00

Transcribed Image Text:

Cost Cost Driver $62,000 Machine hours per unit Machine-related costs Supervision and schedul- ing costs Scheduling hours 48,000 32,000 Engineering hours Engineering costs Inspection and testing Inspection and testing 26,000 hours $168,000 costs Total costs VE1 1,000 2 140 240 320 VE2 1,500 Units produced Machine hours per unit Scheduling hours Engineering hours Inspection and testing hours 180 260 200