Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. 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 F93006.01,800Product U46003.01,800Total direct labor-hours 3,600The direct labor rate is $27.80 per DLH. The direct materials cost per unit is $271.90 for Product F9 and $272.20 for Product U4.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 F9Product
U4TotalLabor-relatedDLHs$38,9881,8001,8003,600Production ordersorders 61,9104006001,000Order sizeMHs 126,1503,8003,7007,500 $2 27,048 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 U4 would be closest to: (Round your intermediate calculations to 2 decimal places.)
A. $189.21 per unit
B. $50.46 per unit
C. $185.73 per unit
D. $32.49 per unit
Answer: A
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