EasyBake Co. creates countertop ovens so easy and safe to use a kid could figure it out! EB Co. has noticed one particular product line is ready for expansion when allocating costs as per the simple method. EB Co. allocates OH using direct labour hours, as each oven is manufactured manually. EB Co. has contacted you to take a look, and let them know if the success of "SweetyPie"'s line is true, or inaccurate OH allocation.

Sweetie Pie DM per unit $100, DL Hrs per unit 8, Units made 2,000. For 60 units made, a quality check is needed. Design hours are 4 for the line

Meatie Pie DM $50 per unit, DL Hrs 4 per unit, 1,000 units produced. For 80 units made, a quality check is needed. Design hours are 2 for the line

OH total $1M and DL per hour is $25. Quality checks are $400,000; Design hours $100,000 and Distribution $350,000, Misc. $150,000.

What is the per unit cost of each pie using SIMPLE costing (8 marks) ABC per each type of Pie (20 marks) and does it really matter the method knowing sales price is $800 for Sweetie and $500 for Meaty?(10 marks)?