Arntson, Inc., manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 is 1,000 units and of Product NO is 300 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Direct Labor- Hours Per Unit Expected Production 1,000 300 Total Direct Labor-Hours 4,000 600 4.0 2.0 Product R3 Product NO Total direct labor- hours 4,600 The direct labor rate is $25.20 per DLH. The direct materials cost per unit is $296.00 for Product R3 and $203.00 for Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $ 41,636 68,360 434,075 $ 544,071 Product R3 Product NO 4,000 600 1,100 300 2,700 3,100 Total 4,600 1,400 5,800 The unit product cost of Product R3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $587.98 per unit $291.98 per unit $688.78 per unit $984.78 per unit