=+8-20 KK Make versus buy, activity-based costing OBJECTIVE 2 Mobile Tech manufactures mobile modems. It manufactures its own mobile modem circuit boards (MMCBs), an important part of the mobile modem. It reports the following cost information about the costs of making MMCBs in 2014 and the expected costs in 2015:

Current costs in 2014 Expected costs in 2015 Variable manufacturing costs Direct materials cost per MMCB $180 $170 Direct manufacturing labour cost per MMCB 50 45 Variable manufacturing cost per batch for set-up, materials handling and quality control 1 600 1 500 Fixed manufacturing costs Fixed manufacturing overhead costs that can be avoided if MMCBs are not made 320 000 320 000 Fixed manufacturing overhead costs of plant depreciation, insurance and administration that cannot be avoided even if MMCBs are not made 800 000 800 000 Mobile Tech manufactured 8000 MMCBs in 2014 in 40 batches of 200 each. In 2015, Mobile Tech anticipates needing 10000 MMCBs. The MMCBs would be produced in 80 batches of 125 each.

Cellparts Ltd has approached Mobile Tech about supplying MMCBs to Mobile Tech in 2015 at $300 per MMCB on whatever delivery schedule Mobile Tech wants.

Required 1 Calculate the total expected manufacturing cost per unit of making MMCBs in 2015.