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 Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product W2	400	6.0	2,400
Product P8	600	4.0	2,400
Total direct labor-hours			4,800

The direct labor rate is $29.10 per DLH. The direct materials cost per unit is $195.60 for Product W2 and $132.30 for Product P8.

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated		Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost		Product W2	Product P8	Total
Labor-related	DLHs	$	210,576	2,400	2,400	4,800
Production orders	orders		17,738	400	300	700
Order size	MHs		273,430	3,800	3,600	7,400
		$	501,744

The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

rev: 03_24_2018_QC_CS-119201

Multiple Choice

• $501.74 per unit

• $639.59 per unit

• $627.18 per unit

• $351.03 per unit