Kroll, Inc., manufactures and sells two products: Product A4 and Product T6. 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 A4800  7.0  5,600 Product T6300  9.0  2,700 Total direct labor-hours      8,300 The direct labor rate is $21.50 per DLH. The direct materials cost per unit is $212.40 for Product A4 and $295.50 for Product T6.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 A4Product

T6TotalLabor-relatedDLHs$402,550 5,6002,7008,300Production ordersorders 61,705 400300700Order sizeMHs 656,110 3,6003,4007,000  $1,120,365    The unit product cost of Product A4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to: (Round your intermediate calculations to 2 decimal places.)

A. $979.95 per unit
B. $1,019.01 per unit
C. $1,307.76 per unit
D. $702.40 per unit


Answer: C

Business

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