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Salvatori, Incorporated, manufactures and sells two products: Product A4 and Product Q5. Data concerning the expected production of each product and the expected total direct
Salvatori, Incorporated, 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: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product A4 500 6.0 3,000 Product Q5 800 3.0 2,400 Total direct labor-hours 5,400 The company has 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 A4 Product Q5 Total Labor-related DLHs $ 158,058 3,000 2,400 5,400 Machine setups setups 5,550 300 200 500 Order size MHs 494,527 3,200 3,500 6,700 $ 658,135 The overhead applied to each unit of Product A4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) $506.26 per unit $654.66 per unit $472.38 per unit $731.28 per unit
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