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Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year: Activity Cost

Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:

Activity Cost Pool Activity Cost Activity Cost Driver
Machine setup $ 660,000 12,000 setup hours
Material handling 100,000 2,000 tons of materials
Machine operation 450,000 10,000 machine hours

The following data are for the production of single batches of two products, C23 Cams and U2 Shafts:

C23 Cams U2 Shafts
Units produced 500 300
Machine hours 4 5
Direct labor hours 200 400
Direct labor cost $ 5,000 $ 10,000
Direct materials cost $ 30,000 $ 20,000
Tons of materials 12.5 8
Setup hours 3 7

Determine the unit costs of C23 Cams and U2 Shafts using ABC. (Round answers to the nearest cent.) C23 Cams $Answer U2 Shafts $Answer

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