53. Assume New Belgium Brewing Company manufactures and distributes three types of beer and that estimated per unit product costs and related information for the next year are shown in the following table:

	Blue Paddle	Somersault	Cocoa Mole Ale
Cost data per unit:
Direct materials	$100,000	$500,000	$750,000
Direct labor	$3,600	$4,800	$6,000
Overhead	$12,000	$16,000	$20,000
Total product cost per unit	$115,600	$520,800	$776,000
Machine hours per unit	30 MH	40 MH	50 MH
Number of units produced per year	30 units	20 units	10 units

a. If New Belgium Brewing Company uses a plantwide overhead rate based on machine hours, what is the total product cost per unit of Cocoa Mole Ale? b. Blue Paddle is a traditional brew made in large quantities with long production runs. Somersault is a seasonal beer made in small batches. Cocoa Mole Ale is a specialty beer also made in small batches. Which of the overhead allocation methods studied in this chapter would you recommend that New Belgium Brewing Company use and why?

54. Time Bender Company makes watches and clocks. The following estimated data are available for the company's next fiscal year: Total direct labor costs: $1,700,000 Total setup costs: $190,000

	Watches	Clocks
Expected production	800,000	100,000
Direct labor hours needed	68,000 DLH	17,000 DLH
Machine setups needed	1,000 setups	1,000 setups

Determine the setup cost per unit for the watches and the clocks if setup costs are assigned using a plantwide overhead rate based on direct labor hours. (Round to two decimal places.)