Gary King has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of $1,248,060 is based on 41,602 machine hours. In an initial analysis of overhead costs, Gary has identified the following activity cost pools. Cost Pool Product assembly Expected Cost Expected Activities $ 651,000 46,500 machine hours Machine setup and calibration 436,600 5,900 setups Product inspection 80,460 1,490. batches Raw materials storage 80,000 320,000 pounds $ 1,248,060 Gary King is taking the next step in his exploration of activity-based costing and wants to examine the overhead costs that would be allocated to two of the department's four products. He has gathered the following budget information about each product. Driver Usage Component 3F5 Component T76 Machine hours 1,000 Setups 40 40 Batches 15 10,000 20 10 10 Pounds of raw materials 10,000 10,000 Gary King found that the budget included production of 500 units of Component 3F5 and 5,000 units of Component T76. (a) Calculate the overhead cost per unit of Component 3F5 and Component T76 under traditional costing using machine hours as the overhead application base.