Crest Inc. produces three products. The operating results for last year were:

Product Sales Quantity Target Selling Price Per Unit $ Actual Selling Price

Per Unit $

$19,000?372\mathrm{.}60$

$22,500363\mathrm{.}00$

$31,000327\mathrm{.}00$

The target price of each product is set at $150\%$ of the product$$s total manufacturing cost. However, sometimes the actual selling price may be very different.

The no$.$ of units sold equated to budgeted sales for each of the first $2$ products, but for the $3$rd$,$ budgeted sales was $1,300$ units. The budgeted overheads figure for the past year was $$869,400$ while actual overheads came in at $$915,300.$ Crest uses the weight of materials to assign manufacturing overhead costs to products $$ a volume$-$based driver. The direct materials and direct labor costs per unit for each product are:

Product $1$ Product $2$ Product $3$

Direct materials $ $131\mathrm{.}00$ $ $67\mathrm{.}00$ $ $82\mathrm{.}00$

Direct labor $28\mathrm{.}0035\mathrm{.}0021\mathrm{.}00$

The controller noticed that not all products consumed factory overhead similarly. Upon further investigation, she identified the following usage of factory overhead during the year, based on budgeted overheads:

Product $1$ Product $2$ Product $3$ Total Overhead

Number of setups $($total$)121715$ $ $89,200$

Weight of direct materials $($pounds per unit$)523289,200$

Waste and hazardous disposals $($total$)624247175,500$

Quality inspections $($total$)950270150192,100$

Utilities $($machine hours per unit$)352123,400$

Total $ $869,400$

Required:

$1.$ Determine the manufacturing cost per unit and target selling price for each of the products using the volume$-$based method.

$2.$ What is the least profitable and the most profitable product under both the volume based and ABC methods?

$3.$ What is the target price for each product based on $150\%$ of costs using ABC? Compare this price with the actual selling price and briefly discuss.