2. Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below: Tennis Golf Racquets Clubs Annual production and sales (units) 6,800 10,700 Direct materials cost per unit $ 5.10 $ 4.20 Direct labour cost per unit: Forming Department $ 7.00 $ 6.50 Finishing Department $ 6.00 $ 7.00 Machine-hours per unit: Forming Department 0.25 0.25 Finishing Department 0.00 0.50 In addition, the firm budgets manufacturing overhead at $62,750 in the Forming Department and $64,500 in the Finishing Department. Determine the total cost per unit of tennis racquets and golf clubs. 3