produet eosting 250 800 145,000 Ralph's Firm manufaetures and sells two produets, eode named A and B. The manufaeturing proeess is relatively simple, with eaeh produet passing through the same set of maehines and using the same labor foree. For convenienee, we might think of this as a manufaeturing faeility with a single department. The aecounting system uses three cost eategories: (i) direet labor, where the cost of any labor easily identified with a speeifie product is recorded; (ii) direet material, where the cost of any materials readily identified with a speeifie produet is reeorded; and (iii)

overhead, where all other produet costs are reeorded.

The accounting for direet materials uses conventional inventory accounting procedures. For convenience, we will assume the price paid suppliers for these items does not vary. In that way, we need not worry about UFO, FIFO, or whatever in the direet material inventory aecounts. (Altematively, we could assume Ralph's Firm uses "just-in-time" inventory procedures with its suppliers.) In a similarvein, proper aecroal procedures are used in recording the direet labor cost. Thus, direet labor cost in a partieular period corresponds to direet labor input during that period, regardless of any lags in paying the employees. Finally, proper aeeroal proeedures are also used in determining manufaeturing overhead for any partieular period. Included in this eategory are such things as insurance, property taxes, supervision, indireet manufaeturing labor, fringe benefits for labor, miseellaneous materiaIs, depreeiation, and energy costs -- all properly eoneemed with manufaeturing operations.

During a recent period, the following was observed (and reeorded):

units produced direet material eost direet labor eost total manufaeturing overhead produetA 1,200 $6,500 $3,000 $45,000 105 produet B 4,800 $3,500 $9,000 What is the per unit manufaeturing eost of A and of B? Determine your answer by alloeating total manufaeturing overhead on the basis of (i) units produced; (ii) direet material eost; (iii) direet labor eost; and (iv) the total of direet material and direet labor eost.AppendixLO1