Abbe, Inc, Manufactures and Sells Two Products: Product O9 and Product

Multiple Choice

Abbe, Inc., manufactures and sells two products: Product O9 and Product A3. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $24.40 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The unit product cost of Product O9 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

A) $544.48 per unit
B) $759.76 per unit
C) $660.48 per unit
D) $926.24 per unit