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Salvatori, Inc., manufactures and sells two products: Product A4 and Product Q5. Data concerning the expected production of each product and the expected total direct
Salvatori, Inc., manufactures and sells two products: Product A4 and Product Q5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor-Hours Per Unit Expected Production 560 860 Total Direct Labor- Hours 3,696 3,096 6,792 Product A4 Product 25 Total direct labor-hours 6.6 3.6 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Machine setups Order size Activity Measures DLHS setups MHS Estimated Overhead Cost $161,058 8,550 497,527 $667,135 Product A4 3,696 600 3,800 Product 25 3,096 500 4,100 Total 6,792 1,100 7,900 The overhead applied to each unit of Product A4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $443.78 per unit $592.18 per unit $427.36 per unit $583.85 per unit
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