Hi Tech Products manufactures three (3) types of CD players: Cheap, Econo and Deluxe. Hi Tech uses an activity-based product costing system. The company has identified five (5) activities. Each activity, its cost and related activity driver are identified below:

Activity

Material handling Material insertion Automated machinery Finishing

Packaging

Total manufacturing cost

Activity Cost

$225 000 $2 475 000 $840 000 $170 000 $170 000 $3 880 000

Activity Driver

Number of parts Number of parts Machine hours Labour hours Orders shipped

The following information pertains to each product line of CD players:

Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labour hours per unit

Cheap

10 000 1000 10

1

Econo Deluxe

5000 2000 500 200 15 25

3 5

2

Under an activity-based product costing system, what is the cost per unit of Cheap?