Bird's Eye View manufactures three different sizes of bird cages: small (for finches and canaries), medium (for cockatiels and small parrots), and large (for cockatoos and other large parrots). The company has recently implemented an activity-based costing system. Bird's Eye View has identified five different production activities as well as the best cost driver for each activity. Each activity and driver is listed below, along with the budgeted amount that is associated with each activity for next year.

Budgeted

ActivityCost DriverCosts

Materials handlingLabor hours$55,000

Automated processingMachine hours40,000

Plastic parts insertionNumber of parts6,000

InspectionsLabor hours29,000

PackagingOrders shipped31,000

Total indirect manufacturing cost$161,000

The following information relates to each size of bird cage and next year'santicipatedmanufacturing operations:

LargeMediumSmall

Units to be produced350400600

Orders to be shipped180200250

Number of parts per unit864

Machine hours per unit421

Labor hours per unit222

Under an activity-based costing system, what is the per unit cost for manufacturing overhead of aMEDIUMcage (rounded)?

• $100
• $136
• $120
• $151