Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections, the information listed below is available:

MacaroonSugarButtercream

Projected sales inunits500,000800,000600,000

Per Unit data:

Sellingprice$0.80$0.75$0.60

Directmaterials$0.20$0.15$0.14

Directlabour$0.04$0.02$0.02

Overhead cost based on direct labour

hours (traditional system)$0.30$0.15$0.15

Hours per 1,000-unit batch:

Direct labourhours211

Ovenhours111

Packaginghours0.50.50.5

Total overhead costs and activity levels for the year are estimated as follows:

ActivityOverhead costsActivity levels

Direct labour2,400 hours

Oven210,0001,900 oven hours

Packaging$150,000950 packaging hours

$360,000

Required:

Using the ABC system, for the sugar cookie, compute the estimated overhead costs per unit.