Faz, Inc., manufactures and sells two products: Product X0 and Product W7. 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 X01,0005.05,000Product W74002.0800Total direct labor-hours 5,800The direct labor rate is $19.60 per DLH. The direct materials cost per unit is $144.50 for Product X0 and $126.00 for Product W7.The 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 X0Product
W7TotalLabor-relatedDLHs$272,0785,0008005,800Production ordersorders 18,9485007001,200Order sizeMHs 242,5144,0004,1008,100 $533,540 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product X0 would be closest to: (Round your intermediate calculations to 2 decimal places.)
A. $78.95 per unit
B. $234.55 per unit
C. $459.95 per unit
D. $149.70 per unit
Answer: C
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