Activity Budgeted Cost Activity Driver

Machine setup $ $10,00020$ machine setups

Parts handling $8,00016,000$ parts

Quality inspections $12,000100$ inspections

Total budgeted overhead $ $30,000$

Unit Information Product A Product B

Units produced $1,000$ units $200$ units

Direct materials cost $ $20$ per unit $ $30$ per unit

Direct labor cost $ $40$ per unit $ $50$ per unit

Direct labor hours $2\mathrm{.}0$ per unit $2\mathrm{.}5$ per unit

Using a plantwide overhead rate based on $2,500$ direct labor hours, compute the total product cost per unit for each product.

Consider the following additional information about these two products. If activity$-$based costing is used to allocate overhead cost,

$($a$)$ compute overhead activity rates,

$($b$)$ allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and

$($c$)$ compute product cost per unit for each.

Actual Activity Usage Product A Product B

Setups $8$ setups $12$ setups

Parts $10,000$ parts $6,000$ parts

Inspections $40$ inspections $60$ inspections

Consider the following additional information about these two products. If activity$-$based costing is used to allocate overhead cost, $($a$)$ compute overhead activity rates, $($b$)$ allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and $($c$)$ compute product cost per unit for each.

Note: Do not round intermediate calculations. Round your final answers to $2$ decimal places.