Betenbaugh, Inc

Multiple Choice

Betenbaugh, Inc., manufactures and sells two products: Product E4 and Product L8. 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 $29.00 per DLH. The direct materials cost per unit is $223.90 for Product E4 and $122.30 for Product L8. 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 L8 under activity-based costing is closest to:

A) $1,649.96 per unit
B) $1,100.40 per unit
C) $1,596.72 per unit
D) $896.50 per unit