Harring, Inc., manufactures and sells two products: Product P0 and Product W2. 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 P0900 6.0 5,400 Product W2200 7.0 1,400 Total direct labor-hours 6,800 The direct labor rate is $17.90 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per UnitProduct P0$242.20 Product W2$151.30 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead CostExpected
Activity???Product P0Product W2TotalLabor-relatedDLHs$303,144 5,4001,4006,800Machine setupssetups 52,332 6008001,400Order sizeMHs 739,125 4,1004,0008,100 $1,094,601 The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $1,825.00 per unit
B. $1,126.79 per unit
C. $995.09 per unit
D. $2,286.58 per unit
Answer: D
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