Data concerning a recent periods activity in the Assembly Department, the first processing department in a company that uses the FIFO method in its process costing, appear below:

	Materials	Conversion
Cost of work in process inventory at the beginning of the period	$ 3,200	$ 650
Equivalent units in the ending work in process inventory	400	200
Equivalent units required to complete the beginning work in process inventory	600	1,200
Cost per equivalent unit for the period	$ 2.32	$ 0.75

A total of 26,000 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 2,000 units and ending work in process inventory consisted of 1,000 units.

Required:

1. Compute the Assembly Department's cost of ending work in process inventory for materials, conversion, and in total for the period.

2. Compute the Assembly Department's cost of units transferred out to the next department for materials, conversion, and in total for the period.

Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 45,000 units next year and Product L is expected to sell 9,000 units. A unit of either product requires 0.2 direct labor-hours.

The company's total manufacturing overhead for the year is expected to be $918,000.

Required:

1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product?

1-b. Compute the total amount of overhead cost that would be applied to each product.

2. Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $459,000 assigned to Product H and $459,000 assigned to Product L.

If this suggestion is followed, how much overhead cost per unit would be assigned to each product?