Boutet, Inc

Multiple Choice

Boutet, Inc., manufactures and sells two products: Product G5 and Product U1. 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 $21.10 per DLH. The direct materials cost per unit is $241.40 for Product G5 and $283.80 for Product U1. 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 G5 under activity-based costing is closest to:

A) $645.30 per unit
B) $563.08 per unit
C) $395.64 per unit
D) $516.26 per unit