1.Fantastic Carvings manufactures furniture. They have decided to develop an activity-based costing system. Shown below is each activity, its cost and the activity driver used to assign these costs to products.

Activity	Activity cost	Activity Driver	Quantity of Activity Driver
Process orders	$93,000	#orders	1500
Make patterns	$201,600	#items made	8000
Carving	$200,000	#hours taken	2150
Finishing	$177,800	#items made	7000

Under an activity-based costing system, what is the activity cost per unit of activity driver for Finishing?

Select one:

A.$25.40

B.$93.02

C.$25.20

D. $62.00

2. Calculate the cost per unit for setup for one run of 4 000 units if setup of machine is $50 per hour and 20 hours are required to set up.

Select one:

A.$0.65 per unit

B.$0.625 per unit

C.$4.00 per unit

D. $2.50 per unit