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1. Compute the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per unit for each product Darby Corp. is considering

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1. Compute the manufacturing overhead cost per unit for each product.

2. Compute the manufacturing cost per unit for each product

Darby Corp. is considering the use of activity-based costing. The following information is provided for the production of two product lines: Activity Cost Allocation Base Setup $ 105,000 Number of setups Machine maintenance $ 60,000 Number of machine hours Total indirect manufacturing costs $ 165,000 Product A Product B Direct labor hours 7,000 5,000 Number of setups 30 170 Number of machine hours 1,600 2,400 Direct material cost per unit $110 $120 Direct labor cost per unit $80 $60 Darby plans to produce 375 units of Product A and 250 units of Product B

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