A company manufactures and sells two products: Product A1 and Product C4. 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 A1	100	2.0	200
Product C4	200	1.0	200
Total direct labor-hours			400

The direct labor rate is $29.70 per DLH. The direct materials cost per unit is $263 for Product A1 and $266 for Product C4.

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 A1	Product C4	Total
Labor-related	DLHs	$	48,000	200	200	400
Production orders	orders		76,200	200	200	400
Order size	MHs		155,280	3,200	2,700	5,900
		$	279,480

The total cost per unit of Product C4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

rev: 03_25_2018_QC_CS-119201

Multiple Choice

• $961.52 per unit

• $1,057.70 per unit

• $676.70 per unit

• $994.40 per unit