Cosgrove Company manufactures two products, Product K$-7$ and Product L$-15.$

Product L$-15$ is of fairly recent origin, having been developed as an attempt to enter

a market closely related to that of Product K$-7.$

Product $L-15$ is the more complex of the two products, requiring $2\mathrm{.}0$ hours of direct

labor time per unit to manufacture compared to $1\mathrm{.}0$ hour of direct labor time for

Product K$-7.$

Overhead currently is applied to the products on the basis of direct labor hours. The

company estimated it would incur $$510,000$ in manufacturing overhead costs and

produce $10,000$ units of Product L$-15$ and $40,000$ units of Product K$-7$ during the

current year.

Unit costs for materials and labor are:

The company is considering the use of activity$-$based costing as an alternative to its

traditional costing method for manufacturing overhead. Data relating to the

company's activity cost pools for the current year are given below:

Compute total cost per unit for Product L$-15$ using activity$-$based costing for the

allocation of activity costs.