3. Fullard, Inc., manufactures and sells two products: Product E2 and Product G3. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product E2	1,000	6.0	6,000
Product G3	800	5.0	4,000
Total direct labor-hours			10,000

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product E2	Product G3	Total
Labor-related	DLHs	$269,900	6,000	4,000	10,000
Machine setups	setups	74,178	500	400	900
General factory	MHs	865,080	4,300	4,600	8,900
		$1,209,158

The total overhead applied to Product E2 under activity-based costing is closest to: $671,750 $417,960 $621,110 $725,520

4. Karsten, Inc., manufactures and sells two products: Product M8 and Product I2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product M8	700	9.0	6,300
Product I2	300	6.0	1,800
Total direct labor-hours			8,100

The direct labor rate is $21.20 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product M8	$211.30
Product I2	$242.90

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product M8	Product I2	Total
Labor-related	DLHs	$299,781	6,300	1,800	8,100
Machine setups	setups	46,514	600	700	1,300
General factory	MHs	462,981	4,900	4,800	9,700
		$809,276

The unit product cost of Product I2 under activity-based costing is closest to: A. $1,133.78 per unit B. $1,179.38 per unit C. $1,439.33 per unit D. $969.56 per unit 5. Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Activity Cost Pools	Activity Rate
Assembling products	$8.90	per assembly hour
Processing customer orders	$31.23	per customer order
Setting up batches	$43.72	per batch

Data for one of the company's products follow:

	Product U94W
Number of assembly hours	389
Number of customer orders	53
Number of batches	61

How much overhead cost would be assigned to Product U94W using the activity-based costing system? $42,176.55 $83.85 $7,784.21 $2,666.92