Mckenny, Inc., manufactures and sells two products: Product P9 and Product X2. 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 P9	200			6.0			1,200
Product X2	100			5.0			500
Total direct labor-hours							1,700

The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $140.60 for Product P9 and $107.50 for Product X2.

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Activity Cost Pools	Activity Measures	Estimated Overhead Cost			Expected Activity
					Product P9	Product X2	Total
Labor-related	DLHs	$	45,084		1,200	500	1,700
Production orders	orders		119,964		600	700	1,300
Order size	MHs		459,818		3,200	2,900	6,100
		$	624,866

The overhead applied to each unit of Product P9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

rev: 03_24_2018_QC_CS-119201

Multiple Choice

• $1,206.08 per unit

• $2,205.42 per unit

• $1,642.04 per unit

• $2,082.89 per unit