Coronado is an electronics components manufacturer. Information about the companys two products follows:

		AM-2		FM-9
Units produced		25,000		4,000
Direct labor hours required for production		12,500		15,000
Units per batch		5,000		400
Shipping weight per unit		0.50	lbs.	10	lbs.

The company incurs $797,500 in overhead per year and has traditionally applied overhead on the basis of direct labor hours.

(a)

(i)	How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,286.)

		AM-2	FM-9
Overhead allocated to each product		___	____

(ii)	What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.)

		AM-2	FM-9
Overhead cost per unit		_____	_____

(b)

Assume that Coronado has identified three activity cost pools.

Pool		Cost		Cost Driver
Assembly		$550,000		Direct labor hours
Setup		37,500		Number of setups (1 per batch)
Packaging		210,000		Weight

(i)	Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,286.)

		AM-2		FM-9
Total allocated overhead		_____		_____

(ii)	What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.)

		AM-2		FM-9
Overhead cost per unit		_____		______