Appleby, Inc., manufactures and sells two products: Product Q9 and Product V8. 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 Q9800 5.0 4,000 Product V81,000 3.0 3,000 Total direct labor-hours 7,000 The direct labor rate is $29.30 per DLH. The direct materials cost per unit is $174.80 for Product Q9 and $168.90 for Product V8.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 Q9Product
V8TotalLabor-relatedDLHs$214,480 4,0003,0007,000Production ordersorders 41,065 300200500Order sizeMHs 192,700 4,2004,0008,200 $448,245 ?The overhead applied to each unit of Product V8 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $94.00 per unit
B. $202.35 per unit
C. $249.03 per unit
D. $192.12 per unit
Answer: B
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