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 unit product cost of Product E7 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

A) $1,028.53 per unit
B) $634.71 per unit
C) $680.00 per unit
D) $954.82 per unit