gradwell inc manufactures and sells two products: product K8 and product I4. 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 K8 300 5.0 1,500

product I4 900 3.0 2,700

total direct labor hours 4,200

The direct labor rate is $17.20 per DLH. The direct materials cost per unit for each product is given below:

Direct materials cost per unit

product K8 $150.20

product I4 $243.70

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 activity measures estimated overhead cost product K8 product I4 total

labor related DLHs $176,064 1,500 2,700 4,200

machine setups setups 71,290 400 600 1,000

order size MHs 121,396 4,300 4,600 8,900

$368,750

The activity rate for the labor related activity cost pool under activity based costing is closest to: and

The overhead applied to each unit of product I4 under activity based costing is closet to: