Aikman, Inc., manufactures and sells two products: Product O6 and Product O7. 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 O62009.01,800Product O780010.08,000Total direct labor-hours 9,800The direct labor rate is $17.50 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per UnitProduct O6$206.50Product O7$162.30The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct O6Product
O7TotalLabor-relatedDLHs$133,7701,8008,0009,800Production ordersorders 18,501400300700Order sizeMHs 145,1803,0003,1006,100 $297,451 The unit product cost of Product O6 is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $721.00 per unit
B. $661.45 per unit
C. $896.71 per unit
D. $637.15 per unit
Answer: C
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