AZ-53975 company makes and sells two products: Product W403 and Product Z756. The annual production and sales of Product W403 is 600 units and of Product Z756 is 200 units. 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 W403	600	8.0	4,800
Product Z756	200	4.0	800
Total direct labor-hours			5,600

The direct labor rate is $27.10 per DLH. The direct materials cost per unit is $233.00 for Product W403 and $285.00 for Product Z756.

The AZ-53975 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 W403	Product Z756	Total
Labor-related	DLHs	$	41,236	4,800	800	5,600
Production orders	orders		55,210	700	200	900
Order size	MHs		433,675	2,900	3,600	6,500
		$	530,121

The unit product cost of Product W403 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

rev: 03_25_2018_QC_CS-119201

Multiple Choice

• $452.92 per unit

• $902.72 per unit

• $1,135.72 per unit

• $685.92 per unit