Hewett, Inc

Multiple Choice

Hewett, Inc., manufactures and sells two products: Product E7 and Product U7. 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 $29.50 per DLH. The direct materials cost per unit is $164.10 for Product E7 and $289.50 for Product U7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product E7 under activity-based costing is closest to:

A) $673.58 per unit
B) $188.65 per unit
C) $657.93 per unit
D) $523.09 per unit