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Hewett, Inc., manufactures and sells two products Product E7 and Product U7. Data concerning the expected production of each product and the expected total direct
Hewett, Inc., manufactures and sells two products Product E7 and Product U7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below. The direct labor rate is $29.50 per DLH. The direct materials cost per unit is $16410 for Product E7 and $289.50 for Product U7. The company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected activity. The overhead applied to each unit of Product E7 under activity-based costing is closest to: $673.58 per unit. $523.09 per unit $657.93 per unit $588.65 per unit
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