Brenneis, Inc

Multiple Choice

Brenneis, Inc., manufactures and sells two products: Product T9 and Product T2. 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 $18.10 per DLH. The direct materials cost per unit is $115.20 for Product T9 and $221.40 for Product T2. 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 T9 would be closest to:

A) $672.48 per unit
B) $201.36 per unit
C) $277.62 per unit
D) $504.60 per unit