EXERCISE 8-6 (CONTINUED)

2. Under the activity-based costing system, overhead costs (both non-

manufacturing and manufacturing) would be applied to products as fol-

lows:

Model X100 Model X200 Total

Unit sales ... 50,000 5,000

Manufacturing overhead

applied ... $1,340,000 $390,000 $1,730,000

Nonmanufacturing over-

head applied ... 160,000 110,000 270,000

Total overhead applied ... $1,500,000 $500,000 $2,000,000

Manufacturing overhead

per unit ... $30 $100