Activity	Cost Driver	Activity Cost
Manufacturing Process M	Number of Mask units produced	600,000 units
Manufacturing Process G	Number of Gloves units produced	1200,000 units
Others	Facility sustaining cost allocated to products based on direct manufacturing labour hour	800 direct manufacturing labour hour

The Shop Medic BD has three activity cost pools; as named in the chart above and described in the production process. For each activity a cost drive is assigned since a change in the cost drive causes cost of an activity to change. For Manufacturing process M the cost drive is the total number of masks produced as this activity pool is dedicated for the production of masks. For Manufacturing process G its the production of gloves and for the other activity pool its the Facility sustaining cost allocated to products based on direct manufacturing labour hour.

	Manufacturing Process M	Manufacturing Process G	Others
Rent	40%	40%	20%
Salaries	18%	18%	64%
Depreciation	71.43%	28.57%	0
Electricity	55%	35%	10%

In Shop Medic BD the total rent is 1,00,000 BDT per month which is divided into five equal sectors, two or 40% for the production of masks, the other two or 40% for the production of gloves (1,00,000 BDT * 80%) 80,000 BDT and the remaining one or 20% for the administrative office (1,00,000 BDT * 20%) 20,000 BDT

As for depreciation both the machines are calculated on the basis of a straight line method with a life expectancy of 20 years or a depreciation rate of 5%. Depreciation cost for mask making machine for the month will be [(30,00,0000 BDT * 5%) / 12 months] 12500 BDT per month. And the depreciation cost of gloves making machine will be [( 12,00,000 BDT * 5%) / 12 months] 5000 BDT per month .

The electricity bill for Shop Medic BD is 35,000 BDT per month. Here one seventh of the cost or 10% is incurred by the administrative office (35,000 BDT * 1/7) 5,000 BDT per month and the electricity cost is incurred by the production process (35,000 BDT * 6/7) 30,000 BDT per month. From which for the production of mask 55% (35,000 BDT * 55%)19250 BDT and for the production of gloves 35% (35,000 BDT * 35%)12250 BDT is used.

An essential part of any business is its salaries, its what attracts workers and also keeps them in check. The same goes for Shop Medic BD, a huge part of its expense is also salaries. there are two experts working directly with the production of gloves, and two experts working in the production of masks, receiving an hourly rate of 100 BDT for 8 hours per day. However as they are producing 12,00,000 units, thus working for 200 hours, it will generate a labor cost of 20,000 BDT each worker (100BDT * 200hours) in the gloves department. Meaning a total cost of 40,000 BDT. As for the mask department producing 6,00,000 units, thus working for 200 hours, it will generate a labor cost of 20,000 BDT each worker (100BDT * 200hours). Meaning a total cost of 40,000 BDT. All this in turn makes 18% of the whole salaries in both departments (185000 BDT * 18%)33,300 BDT. And the rest 64% (185000 BDT * 64%)118,400 BDT goes in the other or administrative department.

	Manufacturing Process M	Manufacturing Process G	Others
Rent	40,000	40,000	20,000
Salaries	33,300	33,300	118,400
Depreciation	12500	5000	0
Electricity	19250	12250	3500
Total	105,050	90,550	141,900

Activity rates:

Manufacturing Process M	0.175
Manufacturing Process G	0.075
Others	177

Determine the unit product cost of your product. Show a break-down of the direct material cost, direct labor cost, MOH applied.