Bobzien, Inc., manufactures and sells two products: Product B7 and Product Z5. 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-HoursProduct B7300 5.0 1,500 Product Z5800 3.0 2,400 Total direct labor-hours 3,900 The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead CostExpected Activity???Product B7Product
Z5TotalLabor-relatedDLHs$39,585 1,5002,4003,900Production ordersorders 26,884 5006001,100Order sizeMHs 462,768 4,6004,7009,300 $529,237 The unit product cost of Product B7 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $1,066.17 per unit
B. $692.82 per unit
C. $890.20 per unit
D. $974.69 per unit
Answer: A
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