5.2

Blevins Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow:

	Basco Boards			Shimano Boards
Production costs
Direct materials	$	25		$	38
Direct labor	$	32		$	54
Allocated overhead	$	15		$	18
Total units produced and sold		5,000			10,000
Total sales revenue	$	500,000		$	1,400,000

Blevins allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $54,000 per quarter, to the two products equally. Required

1. Compute the per-unit cost for each product. (Round your answers to 2 decimal places.)

2. Compute the profit for each product.