If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product C5 would be closest to:

A) $693.44 per unit
B) $965.80 per unit
C) $424.71 per unit
D) $476.74 per unit

Overhead Assigned

The process of allocating indirect costs to specific cost objects, such as products, services, or departments.

Direct Labor-Hours

Direct labor-hours represent the total hours worked by employees directly involved in the manufacturing process, serving as a basis for allocating labor costs to products.

Traditional Costing

An accounting method that allocates manufacturing overhead based on the volume of a cost driver, such as the amount of labor or materials used.