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Urex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and Pro. The company onsists of two departments:

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Urex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and Pro. The company onsists of two departments: Production (where all manufacturing activities are taken) and Marketing (which engages in selling and admin activity only). The ABC system includes in unit product costs all costs easily associated with units. In addition, in the ABC system, there are our major indirect activities: Machine Setups, Special Processing, Factory Supervision, and Customer Relation The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHs) are given below for one unit of the product, as well as the total units produced and sold Product Price DM DLHS Hourly Wage-DL Shipping Cost Units Basic $180 $501 $ 10 2 $ 6 .000 Pro $320 $80 2 $12 $4 4,000 The company collected the data for ABC as follows: Activity Measure Estimated OH cost Activity Cost Pool Activity measures used Basic Pro 60120 6.000 10.000 Machine Setup Special Processing Factory Supervision Customer Relation (10 customers) of setups Machine hours DLH of customers $ $ $ 472.500 360.000 224 000 240.000 Under the ABC system, what is the unit product cost for Basic? (Choose the closest amount) Multiple Choice O s12475 27soo Stors S12675

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