Answer:
$42.61
Explanation:
The computation of the total overhead cost of Great P model is as follows:
Activity Overhead allocated to Great P
Engineering and Design ($40,,712 × 1440 ÷ 2409 ) $241,920
Quality control ($269,808 × 7,200 ÷ $12,848 ) $151,200
Machinery ($539,616 × 13,440 ÷ 33,726 ) $215,040
Miscellaneous overhead ($134,904 × 14,400 ÷ 26,400 ) $73584
Total $681,744
Now the overhead per unit is
= Total Overhead allocated ÷ Annual sales in units
= $681,744 ÷ 16,000
= $42.61
hence, the first option is correct
