Mckenny, Inc., manufactures and sells two products: Product P9 and Product X2. 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 P9200 6.0 1,200 Product X2100 5.0 500 Total direct labor-hours 1,700 The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $140.60 for Product P9 and $107.50 for Product X2.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 P9Product
X2TotalLabor-relatedDLHs$45,084 1,2005001,700Production ordersorders 119,964 6007001,300Order sizeMHs 459,818 3,2002,9006,100 $624,866 The overhead applied to each unit of Product X2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $2,964.58 per unit
B. $2,186.02 per unit
C. $1,837.85 per unit
D. $2,082.89 per unit
Answer: A
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