Vattes, Inc., manufactures and sells two products: Product 15 and Product U1. 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- Total Direct Hours Expected Labor- Per Production Unit Hours Product I5 700 7.0 4,900 Product U1 4.0 800 200 Total direct labor-hours 5,700 The direct labor rate is $22.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $261.60 $121.60 Product I5 Product U1 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Machine setups Measures Cost Product I5 Product U1 Total 5,700 DLHS $268,698 37,324 4,900 800 setups 300 400 700 Mc Estimated Expected Activity Overhead Activity Total Product U1 Product I5 Cost Measures Activity Cost Pools 5,700 800 4,900 $268,698 DLHS Labor-related 700 400 300 37,324 Machine setups setups 4,800 9,700 4,900 MHs 633,895 $939,917 Order size The overhead applied to each unit of Product U1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,863.60 per unit $659 60 per unit $1.568 40 per unit $1044 35 per unit