A manufacturing company produces three products: A,B, and C. Units produced of each product for a recent period were 100,000, 40,000, and 20,000 respectively.
Total manufacturing overhead is $6,200,000
Direct costs incurred in production for the period were as follows:
	A	B	C
Direct materials	2,200,000	1,700,000	2,300,000
Direct labor	3,000,000	1,400,000	1,600,000

b) Assume instead that the company uses an ABC system with three activity pools: setups, inspections, and machine costs. The amount of overhead allocated to each pool, and the
usage of each pool by product, are given below. Compute the unit cost of each product using the ABC methodology.
Activities	Cost	Activity Rate	A	B	C	Activity Driver Volumes
Setups	2,600,000	5200	50	300	150	500	setups
Inspections	1,500,000	1000	300	700	500	1,500	inspections
Machine costs	2,100,000	42	23,000	15,000	12,000	50,000	machine hours
	6,200,000