Nole, Inc., manufactures and sells two products: Product W8 and Product N0. 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 W8100 9.0 900 Product N01,000 11.0 11,000 Total direct labor-hours 11,900 The direct labor rate is $17.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per UnitProduct W8$176.40 Product N0$280.50 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 W8Product N0TotalLabor-relatedDLHs$461,720 90011,00011,900Machine setupssetups 25,865 300400700Order sizeMHs 796,220 4,0004,2008,200 $1,283,805 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 W8 would be closest to: (Round your intermediate calculations to 2 decimal places.)
A. $873.90 per unit
B. $349.20 per unit
C. $332.55 per unit
D. $970.92 per unit
Answer: D
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