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1. Mahaley, Inc., manufactures and sells two products: Product Q9 and Product F0. 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 Q9	870	8.7	7,569
   Product F0	870	6.7	5,829
   Total direct labor-hours			13,398

   The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below:

   	Direct Materials Cost per Unit
   Product Q9	$175.60
   Product F0	$147.40

   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 Q9	Product F0	Total
   Labor-related	DLHs	$	386,680	7,569	5,829	13,398
   Machine setups	setups		47,330	650	550	1,200
   Order size	MHs		288,200	3,800	3,600	7,400
   		$	722,210

   The unit product cost of Product F0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

   	A.	$750.82 per unit
   	B.	$677.62 per unit
   	C.	$526.87 per unit
   	D.	$371.35 per unit

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