Athena Company produces high-quality hand tools for wood- working. The company is conducting an ABC study. You are a manager at Athena, and you have been given the following information:

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A. Calculate the:
1. cost per machine hour.
2. cost per materials movement.
3. cost per engineering drawing. 

4. predetermined overhead rate for facility-level costs.

B. Determine the total overhead costs and the unit overhead cost of products A and B.

C. Explain why the overhead costs of the two products are different.

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Costs and Activity Rates by Overhead Category Unit Level Batch Level Estimated cost $50,000 $20,000 Product Level $10,000 Facility Level $20,000 Estimated activity 500 80 25 machine hours materials movements engineering drawings (applied as a percentage of unit-, batch-, and product-level costs) You have been asked to calculate the overhead costs associated with products A and B. The units produced of and the resources consumed by products A and B are as follows: Engineering Drawings Units Machine Materials Produced Hours Movements Product A 40 40 1 0 Product B 10 10 2 2