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 Activity Cost Activity Driver

Material handling $225 000 Number of parts

Material insertion $2 475 000 Number of parts

Automated machinery $840 000 Machine hours

Finishing $170 000 Labour hours

Packaging $170 000 Orders shipped

Total manufacturing cost $3 880 000

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

Cheap Econo Deluxe

Units to be produced 10 000 5000 2000

Orders to be shipped 1000 500 200

Number of parts per unit 10 15 25

Machine hours per unit 1 3 5

Labour hours per unit 2 2 2

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