Ace Company manufactures two products, X and Y. The following information is given for X only:

X

Annual production units 2,000 units

Direct material cost per unit of product $15

Direct labor cost per unit of product 25

The company uses activity-based costing. And its overhead costs are traced to two activity cost pools. The following data are given:

Activity

cost pool

Activity measure

Activity rate

Total activity needed (for all 2,000 units of X together)

Design

Number of parts

$3 per

part

3,000 parts

Processing

Direct labor hours

$8 per

direct labor hour

1,000 direct labor hours

What is the total overhead cost assigned to X (for all 2,000 units together)?

	A.	$15,000
	B.	$11,000
	C.	$13,000
	D.	17,000
	E.	$18,000

What is the unit product cost (cost per unit)?

		$52.50
		$48.50
		$61
		$36
		$54.50