Petrov Company identified the following activities, estimated costs for each activity, and identified cost drivers for each activity for this coming year. These are the first three steps of activity-based costing.

Required

a. Using the estimates for the year, compute the predetermined overhead rate for each activity (step 4 of the activity-based costing process).

b. Using the activity rates calculated in requirement a and the actual cost driver activity levels shown for March, allocate overhead to the three products for the month of March (step 5 of the activity-based costing process).

c. For each product, calculate the overhead cost per unit for the month of March.
Round per unit costs to the nearest cent.

d. For each product, calculate the product cost per unit for the month of March.
Round per unit costs to the nearest cent.

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Estimated Annual Estimated Annual Overhead Cost Driver Activity Production setup Cost Driver Costs Number of production runs $ 60,000 Materials handling Quality control Yards of material purchased Number of inspections 140,000 Activity 100 production runs 10,000 yards purchased 80,000 800 inspections Total $280,000 The company produces two products, MXI and MX2. Information about these products for the month of March follows. MX1 MX2 Direct materials cost per unit $20 $30 Direct labor cost per unit 15 45 Overhead cost per unit ? ? Product cost per unit ? Units produced 1,000 units 700 units Actual cost driver activity levels for the month of March are as follows: MX1 MX2 Number of production runs 3 6 Yards of material purchased 550 230 Number of inspections 40 10