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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 beloww: Total Direct Production Hours Per Unit Labor-Hours Expected Direct Labor- Product W2 Product P8 Total direct labor-hours 400 600 2,400 2,400 4,800 6.0 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 Overhead Measures Activity Cost Pools Labor-related Production orders Order size Product W2 Product P8 Total 4,800 700 7,400 Cost $210,576 DLHs orders MHS 2,400 400 3,800 2,400 300 3,600 17,738 273,430 $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.) Multiple Choice $501.74 per unit $639.59 per unit $62718 per unit $351.03 per unit
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