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Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct
Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Direct Labor-Hours Production Per Unit 300 Product W2 Product P8 Total direct labor-hours Total Direct Labor-Hours 1,800 1,800 3,600 600 The direct labor rate is $35.10 per DLH. The direct materials cost per unit is $201.60 for Product W2 and $138.30 for Product P8. 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 $216,576 18,338 233,086 $468,000 Product W2 1,800 460 3,860 Product P8 1,800 360 3,660 Total 3,600 820 7,520 The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) o $612.64 per unit o $794.11 per unit o $780.00 r unit o $398.87 per unit
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