Demolition Derby produces two products, Igniters and Blasters, and its normal activity is 300,000 cartons of Igniters and 100,000 cartons of Blasters. It uses activitybased costing, and has developed the following “activity” information for these products.

Expected Number of Activities(Driver Units)
Cost Drivers Igniters Blasters Total Direct labor hours (DLH) 60,000 40,000 100,000 Square feet of floor space (SF) 600,000 200,000 800,000 Material moves (MM) 350,000 50,000 400,000 Demolition Derby has $300,000 of fixed factory overhead costs that are not associated with an identifiable cost driver. It traces its $1,100,000 total variable factory overhead costs to its activity pools related to the previous cost drivers as follows: direct labor re- lated, $500,000; floor space related, $200,000; and material moves related, $400,000. De- molition Derby assigns its fixed factory overhead costs to cartons based on 100,000 di- rect labor hours. It takes 0.2 direct labor hours to produce a carton of Igniters and 0.4 direct labor hours to produce a carton of Blasters.
Required: (1) Determine Demolition Derby’s total overhead cost per carton of each product.
(2) For each activity pool, determine the average driver units per carton of Blasters. Verify the total variable overhead cost per carton of Blasters, LKY-1 which you computed in (1).