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Hesson, Inc., manufactures and sells two products: Product F3 and Product FO. Data concerning the expected production of each product and the expected total direct
Hesson, Inc., manufactures and sells two products: Product F3 and Product FO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below Total Direct Direct Labor- Expected Production Hours Per Unit Labor-Hours Product F3 300 6.0 1,800 200 Product FO 5.0 1,000 Total direct labor-hours 2,800 The direct labor rate is $16.30 per DLH. The direct materials cost per unit for each product is given below Direct Materials Cost per Unit Product F3 $261.40 Product FO $187.50 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Activity Overhead Activity Cost Pools Product F3 Product FO Total Measures Cost $110,964 33,005 Labor-related 1,800 1,000 2,800 DLHS Machine setups setups 300 200 500 486,720 Order size 3,100 2,900 6,000 MHs $630,689 The unit product cost of Product FO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,395.25 per unit $1,530.38 per unit $1,445.24 per unit $1,709.40 per unit
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