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Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected...

Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. 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 F9 100 2.0 200
Product U4 200 1.0 200
Total direct labor-hours 400

The direct labor rate is $29.70 per DLH. The direct materials cost per unit is $263 for Product F9 and $266 for Product U4.

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 F9 Product U4 Total
Labor-related DLHs $ 48,000 200 200 400
Production orders orders 76,200 200 200 400
Order size MHs 155,280 3,200 2,700 5,900
$ 279,480

The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

rev: 03_25_2018_QC_CS-119201

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