Penegar,Inc

Multiple Choice

Penegar,Inc. ,manufactures and sells two products: Product X7 and Product S4.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 $21.60 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 S4 under activity-based costing is closest to:

A) $472.29 per unit
B) $627.96 per unit
C) $1,007.68 per unit
D) $837.27 per unit