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 T6 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $2,075.92 per unit
B. $1,507.51 per unit
C. $1,551.27 per unit
D. $1,703.82 per unit
Answer: A
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