Honeydew Company produces two products, a high end laptop computer under the label Bunsen Laptops,

and an inexpensive desktop computer under the label Beaker Computers. The two products use two

overhead activities - setting up equipment and machining - with the following costs.

The cost driver for setting up equipment cost is setup hours while the cost driver for machining cost is machine hours.

Setting up equipment	$12,000
Machining	$18,000

The controller has collected the expected annual direct costs for each product, the machine hours, the setup hours, and the expected production.

	Bunsen	Beaker
Direct Labor Cost	$20,000	$5,000
Direct Labor Hours	2,000	500
Direct Materials Cost	$15,000	$4,000
Expected production in Units	200	50
Machine hours	750	1,500
Setup hours	10	50

Calculate the cost per unit for making each Beaker Computer, using ABC overhead rates based on both machine hours and setup hours.

	A.	$620
	B.	$440
	C.	$380
	D.	$280
	E.	None of these choices