Answer:
Gradwell, Inc.
The overhead applied to each unit of Product I4 under activity-based costing is closest to:_______.
 $243.00 per unit.
Explanation:
a) Data and Calculations:
production per unit                       DL rate   Total Labor Cost
product K8    300    5.0     1,500   $17.20       $25,800
product I4     900     3.0   2,700    $17.20        $46,440
total direct labor hours    4,200   $17.20        $72,240
production per unit       Direct Materials   Total Material Cost
product K8    300          $150.20                   $45,060
product I4     900          $243.70                    219,330
Total direct materials costs =                      $264,390
Estimated Expected activity
Activity Cost Pools Activity Measures  Overhead  Product  Product  Total           
                                                                    Cost          K8           I4 
labor related            DLHs                 $176,064       1,500       2,700   4,200
machine setups       setups                   71,290         400          600    1,000
order size                MHs                      121,396      4,300       4,600   8,900
Total                                                  $368,750
Overhead  Cost Allocation  Product    Product    Total           
                                                 K8             I4 
Labor cost                         $62,880    $113,184  $176,064
Machine setups                   28,516      42,774       71,290
Order size                           58,652     62,744      121,396
Total                                $150,048  $218,702  $368,750
Quantity                                300          900
Overhead per unit          $500.16    $243.00