Campbell Manufacturing estimated its product costs and volume of production for Year 3 by quarter as follows.

	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
Direct raw materials	$	81,500			$	41,500			$	121,500			$	61,500
Direct labor		48,900				24,900				72,900				36,900
Manufacturing overhead		83,000				127,000				163,000				110,480
Total production costs	$	213,400			$	193,400			$	357,400			$	208,880
Expected units produced		16,300				8,300				24,300				12,300

Campbell Company sells a souvenir item at various resorts across the country. Its management uses the products estimated quarterly cost to determine the selling price of its product. The company expects a large variance in demand for the product between quarters due to its seasonal nature. The company does not expect overhead costs, which are predominately fixed, to vary significantly as to production volume or with amounts for previous years. Prices are established by using a cost-plus pricing strategy. The company finds variations in short-term unit cost confusing to use. Unit cost variations complicate pricing decisions and many other decisions for which cost is a consideration. Required

a. Based on estimated total production cost, determine the expected quarterly cost per unit for Campbells product.

b-1. Calculate the predetermined overhead rate.

b-2. Calculate the unit cost per quarter based on the predetermined overhead rate.

Req A

Based on estimated total production cost, determine the expected quarterly cost per unit for Campbells product. (Round your answers to 2 decimal places.)

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Estimated cost		per unit		per unit		per unit		per unit

Req B1

Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)

Predetermined overhead rate

per unit

Req B2

Calculate the unit cost per quarter based on the predetermined overhead rate. (Round your intermediate calculations and final answers to 2 decimal places.)

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Cost per unit