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Bolerjack, Inc., manufactures and sells two products: Product G9 and Product B6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
| Expected Production | Direct Labor-Hours Per Unit | Total Direct Labor-Hours | |
| Product G9 | 100 | 6.0 | 600 |
| Product B6 | 500 | 9.0 | 4,500 |
| Total direct labor-hours | 5,100 |
The direct labor rate is $16.50 per DLH. The direct materials cost per unit is $204.30 for Product G9 and $284.50 for Product B6.
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Estimated | Expected Activity | ||||
| Activity Cost Pools | Activity Measures | Overhead Cost | Product G9 | Product B6 | Total |
| Labor-related | DLHs | $181,305 | 600 | 4,500 | 5,100 |
| Production orders | orders | 79,196 | 600 | 700 | 1,300 |
| General factory | MHs | 580,964 | 3,200 | 2,900 | 6,100 |
| $841,465 | |||||
The unit product cost of Product G9 under activity-based costing is closest to:
$1,705.74 per unit
$3,350.98 per unit
$1,293.24 per unit
$3,929.80 per unit
Expert Answer
