Crimin, Inc., manufactures and sells two products: Product V7 and Product Y2. 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 V77005.03,500Product Y27004.02,800Total direct labor-hours 6,300The direct labor rate is $19.80 per DLH. The direct materials cost per unit for each product is given below: Direct MaterialsCost per UnitProduct V7$208.90Product Y2$297.60The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct V7Product
Y2TotalLabor-relatedDLHs$154,3503,5002,8006,300Machine setupssetups 114,5956007001,300Order sizeMHs 292,5443,1003,3006,400 $561,489 The unit product cost of Product V7 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. $536.45 per unit
B. $748.65 per unit
C. $430.40 per unit
D. $753.55 per unit
Answer: D
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