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Paolello,Inc. ,manufactures and sells two products: Product P5 and Product N5.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 $24.60 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 P5 under activity-based costing is closest to:
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