Mellencamp,Inc

Multiple Choice

Mellencamp,Inc. ,manufactures and sells two products: Product A3 and Product Y6.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 $24.20 per DLH.The direct materials cost per unit is $146.60 for Product A3 and $256.20 for Product Y6. 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 Y6 under activity-based costing is closest to:

A) $1,151.80 per unit
B) $676.28 per unit
C) $1,082.58 per unit
D) $1,139.74 per unit