After attending a seminar on measuring customer profitability, Mason Ford decided to examine Olson Optics' customers to determine if the company truly knew how profitable its customers were. Olson Optics already uses an activity-based costing system to determine the product cost of its two products: RF30 and LF45. Each RF30 sells for $20 and requires $7.60 in direct materials and $5.00 in direct labor. Each LF45 sells for $55 and requires $16.80 in direct materials and $13.80 in direct labor. The following table provides cost and activity information for manufacturing overhead for the two products, Number of Activities RF30 LF45 Total 625.000 Activity Cost Pool Cost Driver Packing Cartons Setup Setup hours Assembly Spot welds Finishing Machine hours Total manufacturing overhead costs Units produced Manufacturing Overhead Costs $250,000 450,000 604,500 370,000 $1,674,500 375,000 10,000 130,000 20,000 250,000 27,500 260,000 80,000 37,500 390,000 100,000 545,500 225,800 Based on what Ford learned at the seminar, he has gathered the following information about customer support activities. Cost Driver Selling Costs Driver Volume 40,000 5,000 Activity Cost Pool Order entry Customer support Sales calls Express shipping Total selling costs Orders Support hours Sales calls Shipments $200,000 155,000 240.000 161,000 $756,000 2,000 7,000 Ford wants to apply his new profitability analysis techniques to Infrared Technologies a company he believes is representative of Ford wants to apply his new profitability analysis techniques to Infrared Technologies, a company he believes is representative of Olson's average customer. Information about Infrared's account activity is as follows. 10,000 units 3,000 units 110 RF30 purchases LF45 purchases Orders placed Customer support Sales calls Express shipments 350 hours 23 90 (a) Calculate the activity-based product cost for RF30 and LF45. (Round answers to 2 decimal places, e.g. 15.25.) RF30 LF45 Total unit cost $ $ e Textbook and Media Save for Later Attempts: unlimited Submit