DFC Inc. has budgeted manufacturing overhead costs of $2,220,000. It has allocated overhead on a plant-wide basis to its two products (Soft Wood and Hard Wood) using machine hours, which are estimated to be 109,000 for the current year. The company has decided to experiment with activity based costing and has created five activity cost pools and related activity cost drivers as follows: Activity Centre Material Handling Cost Driver Estimated Overhead Number of moves $235,000 Expected Activity 28,000 moves Purchase Orders Number of orders $205,000 Product Testing Number of tests $440,000 Machine Set-up Number of set-ups $550,000 3,750 orders 7,350 tests 6,800 set-ups Machining Machine hours $790,000 75,000 machine hours Each unit of the products requires the following: Direct Material Costs Direct Labour Costs Purchase Orders Machine Set-up Product Testing Machining Material Handling Required: Soft Wood Hard Wood $250 $180 $190 2 3 $70 5 6 6 6 35 55 4 4 1. Under traditional costing using machine hours, calculate the total manufacturing cost per unit of both products. 2. Calculate the total manufacturing cost per unit for both products under ABC.