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Arntson, Incorporated, manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 is 200 units and
Arntson, Incorporated, manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 is 200 units and of Product NO is 100 units. Data concerning the expected production of each product and the expected total direct labor-hours (OLHS) required to produce that output appear below: Product R3 Product NO Total direct labor-hours Direct Total Labor- Direct Expected Hours Labor- Production Per Unit Hours 200 100 8.0 1,600 11.0 1,100 2,700 The direct labor rate is $15.80 per DLH. The direct materials cost per unit is $287.80 for Product R3 and $104.80 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 Estimated Overhead Activity Cost Pools Measures Labor-related Production orders Order size DLHS orders Cost $ 39,636 Product R3 57,421 432,075 $529,132 1,600 600 3,600 Product No. Total 1,100 2,700 700 1,300 3,900 7,500 The unit product cost of Product NO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $2,434.27 per unit $2,525.39 per unit $2,042.37 per unit $2,996.06 per unit
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