Treaster, Inc., manufactures and sells two products: Product J8 and Product G2. 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 J8900 9.0 8,100 Product G21,000 12.0 12,000 Total direct labor-hours 20,100 The direct labor rate is $26.90 per DLH. The direct materials cost per unit is $217.20 for Product J8 and $139.60 for Product G2.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 J8Product
G2TotalLabor-relatedDLHs$655,059 8,10012,00020,100Production ordersorders 40,086 500400900Order sizeMHs 711,588 3,9003,7007,600 $1,406,733 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product G2 would be closest to: (Round your intermediate calculations to 2 decimal places.)
A. $534.48 per unit
B. $391.08 per unit
C. $839.88 per unit
D. $1,123.56 per unit
Answer: C
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