Paolello, Inc

Multiple Choice

Paolello, Inc., manufactures and sells two products: Product P5 and Product N5. 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 $24.60 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 overhead applied to each unit of Product P5 under activity-based costing is closest to:

A) $620.13 per unit
B) $541.07 per unit
C) $363.71 per unit
D) $534.24 per unit