Answer:
$695.24 per unit
Explanation:
Calculation to determine what The unit product cost of Product R3 under activity-based costing is closest to
First step is to Calculate Activity rates
Activity Cost Pool	Activity driver	Overhead Cost (A)	Expected Activity (B)	Activity rate (A/B)
Labor related	Number of DLH	$ 40,636÷13,000	= 3.13 Per DLH
Production orders	Number of Order	65,880÷	1,600= 41.18 Per Order
Order size	Number of MH	433,075÷	7,600 = 56.98 Per MH
Second step is to calculate the Cost assigned to Product R3 
Cost assigned to Product R3
Activity name	Activity Rates	Activity	ABC Cost
(A)	(B)	(A x B)
Labor related	3.13 * 11,000 =$34,430
Production orders	41.18* 1,200=$49,416
Order size	56.98*3,900= $222,222
Total Overheads assigned $306,068	
($34,430+$49,416+$222,222)
Production 1,100
Overhead cost per unit	$278.24
Product R3
Direct material $211
Direct labor (10x $20.60 per DLH)	$206
Overheads	$278.24
Total Cost per unit	$695.24
 ($211+$206+$278.24)
Therefore The unit product cost of Product R3 under activity-based costing is closest to $695.24 per unit