Lazano, Inc., manufactures and sells two products: Product W4 and Product Z2. 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 W45006.03,000Product Z24004.01,600Total direct labor-hours 4,600The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct W4Product Z2TotalLabor-relatedDLHs$89,1483,0001,6004,600Product testingtests 45,6804006001,000Order sizeMHs 410,1753,8003,7007,500 $545,003 The overhead applied to each unit of Product Z2 under
activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $473.92 per unit
B. $505.88 per unit
C. $605.56 per unit
D. $651.92 per unit
Answer: D
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