Gesualdo, Inc., manufactures and sells two products: Product Z6 and Product F4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected ProductionDirect Labor-Hours Per UnitTotal Direct Labor-HoursProduct Z63008.02,400Product F460011.06,600Total direct labor-hours 9,000The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per UnitProduct Z6$101.00 Product F4$217.20 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct
Z6Product F4TotalLabor-relatedDLHs$98,6402,4006,6009,000Machine setupssetups 18,7115006001,100Order sizeMHs 388,3603,8003,5007,300 $505,711 The overhead applied to each unit of Product Z6 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $673.87 per unit
B. $449.52 per unit
C. $561.90 per unit
D. $789.90 per unit
Answer: D
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