Drilling Company uses activity-based costing and provides this information:

Manufacturing ActivityCost DriverDriver RateMaterials handlingNumber of parts$0.3MachineryNumber of machine hours48AssemblyNumber of parts2.70InspectionNumber of finished units27

Drilling has just completed 77 units of a component for a customer. Each unit required 97 parts and 2.85 machine hours. The prime cost is $1,270 per finished unit. All other manufacturing costs are classified as manufacturing overhead.

Required:

1. Compute the total manufacturing costs and the unit costs of the 77 units just completed using ABC costing.

2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $177 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $297 per unit. Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost category.