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 X2 would be closest to:

A) $132.60 per unit
B) $1,837.85 per unit
C) $376.90 per unit
D) $461.40 per unit

Overhead Assigned

The allocation of indirect costs to specific products, services, or activities within a business.

Traditional Costing

A costing methodology that allocates manufacturing overhead based on volume-related measures such as labor hours or machine hours.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, indicative of the labor input required to complete production tasks.