$15$Anassemble$-$to$-$orderhardwarecompanyhastwotypesofcentralprocessingunits$($CPUs$),$C$1$andC$2,$andtwotypesofdisplaymonitors,M$1$andM$2.$UnitC$2$isslightlymorecomplexthenC$1,$asisM$2$comparedtoM$1.$TheannualproductionvolumeanddirectcostsareshowninTable$1-9.$OverheadcostsforthispastyearareshowninTable$1-10.$AssumethatsetupandtestingcostsaresimilarforbothtypesofCPUsandmonitors.

TABLE$1-9$

CPU

Monitor

AnnualvolumeUnitcostsDirectlabor$($$$)$Directmaterial$($$$)$Assembly$($$$)$

C$110,000806040$

C$215,00014010060$

M$118,0001208060$

M$220,000200120100$

TABLE$1-10$

CategoryCost$($$millions$)$

Setupandtesting$1\mathrm{.}1$Product$-$linecostCPUC$10\mathrm{.}5$CPUC$21\mathrm{.}5$MonitorM$10\mathrm{.}8$MonitorM$22\mathrm{.}5$Othercompanycosts$0\mathrm{.}6$

$($a$)$

Calculatethecostperunitofeachproductusingtheunit$-$basedcostingmethodbyallocatingoverheadbasedondirect$-$laborcosts.

$($b$)$

Calculatethecostperunitofeachproductusingtheactivity$-$basedcostingmethod.

$($c$)$

Discusstheunitcostscalculatedusingthesetwomethods.