ABC, process costing. Walsh Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here:

	Mathematical	Financial
Annual production in units	25,000	50,000
Direct material costs	$75,000	$150,000
Direct manufacturing labor costs	$25,000	$50,000
Direct manufacturing labor-hours	1,250	2,500
Machine-hours	40,000	70,000
Number of production runs	50	50
Inspection-hours	1,200	800

Total manufacturing overhead costs are as follows:

	Total
Machining costs	$440,000
Setup costs	110,000
Inspection costs	120,000

Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product.

Compute the manufacturing cost per unit for each product.

How might Walshs managers use the new cost information from its activity-based costing system to better manage its business?