Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver Machine setup $ 29,000 (20 machine setups) Parts handling 23,200 (16,000 parts) Quality inspections 34,800 (100 inspections) Total budgeted overhead $ 87,000 Unit Information Product A Product B Units produced 2,900 units 580 units Direct materials cost $ 39 per unit $ 49 per unit Direct labor cost $ 59 per unit $ 69 per unit Direct labor hours 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 7,250 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each.

Actual Activity Usage	Product A	Product B
Setups	8	setups	12	setups
Parts	10,000	parts	6,000	parts
Inspections	40	inspections	60	inspections

Activity	Budgeted Cost	Activity Driver
Machine setup	$ 29,000	(20 machine setups)
Parts handling	23,200	(16,000 parts)
Quality inspections	34,800	(100 inspections)
Total budgeted overhead	$ 87,000

Unit Information	Product A	Product B
Units produced	2,900	units	580	units
Direct materials cost	$ 39	per unit	$ 49	per unit
Direct labor cost	$ 59	per unit	$ 69	per unit
Direct labor hours	2	per unit	2.50	per unit