Boahn, Inc

Multiple Choice

Boahn, Inc., manufactures and sells two products: Product B6 and Product W8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 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:

A) $1,859.67 per unit
B) $356.67 per unit
C) $545.49 per unit
D) $456.30 per unit