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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: Direct Labor- Expected Hours Per Production Unit 650 7.5 950 4.5 Total Direct Labor- Hours 4,875 4,275 9,150 Product A4 Product 05 Total direct labor-hours The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity. Activity Cost Pools Labor-related Machine setups Order size Activity Measures DLHS setups MHS Estimated Overhead Cost $ 165,558 13,050 502,027 $ 680,635 Expected Activity Product A4 Product 05 4,875 4,275 1,050 950 4,700 5,000 Total 9,150 2,000 9,700 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 $520.49 per unit $509.94 per unit $372.09 per unit O $374.26 per unit
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