Wardsworth, Inc., manufactures and sells two products: Product I9 and Product Z9. 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 I9700 6.0 4,200 Product Z9900 8.0 7,200 Total direct labor-hours 11,400 The direct labor rate is $26.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per UnitProduct I9$226.10 Product Z9$151.20 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 I9Product Z9TotalLabor-relatedDLHs$463,980 4,2007,20011,400Machine setupssetups 9,814 300400700Order sizeMHs 105,792 4,4004,3008,700 $579,586 The unit product cost of Product I9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $744.34 per unit
B. $458.53 per unit
C. $708.74 per unit
D. $687.14 per unit
Answer: C
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