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Fleurant. Incorporated, manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct
Fleurant. Incorporated, 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- Production Hours Per Unit 400 5 500 4 Product W2 Product P8 Total direct labor-hours Total Direct Labor-Hours 2,000 2,000 4,000 The direct labor rate is $34.10 per DLH. The direct materials cost per unit is $200.60 for Product W2 and $137.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Measures DLHS orders MHS Activity Cost Pools Labor-related Production orders Order size Total 4,000 Estimated Overhead Cost $ 215,576 18, 238 246,186 $ 480,000 Expected Activity Product W2 Product P8 2,000 2,000 450 350 3,850 3,650 800 7,500 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 0 $600.00 per unit O $474.58 per unit $610.99 per unit O $315.89 per unit
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