Company produces mathematical and financial calculators and operates at capacity. Data related to the two products follows.

Total manufacturing overhead costs are:

	Total
Machining costs	$420,000
Setup costs	130,000
Inspection costs	135,000
		Mathematical		Financial
Annual production in units		25,000		75,000
Direct materials cost		$50,000		$150,000
Direct manufacturing labor cost		$12,500		$37,500
Direct manufacturing labor-hours		2,500		2,500
Machine-hours		20,000		40,000
Number of production runs		50		50
Inspection hours		1,200		600

Requirements

1.	Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product.
2.	Compute the manufacturing cost per unit for each product.
3.	How might Philip's managers use the new cost information from its activity-based costing system to better manage its business?