In a normal year, Maroone Inc normally runs about 20,000 direct labor hours. In 2017 the company identified the following overhead costs and activity drivers for the year 2018.				After production began in 2018, the company made two products. Details of those are below...
Overhead Item	Expected in 2018				Model SS	Model TT
Setup Costs	$150,000			Direct Materials	$2,250	$2,500
Ordering costs	$40,000			Direct labor	$3,000	$1,875
Maintenance	$200,000			Units completed	375	300
Power	$20,000			DLHs	90	110
Kilowatt hrs	100,000			# of setups	6	8
Machine hrs	16,000			# of orders	8	15
# of orders	10,000			Machine hrs	180	150
# of setups	1,200			Kilowatt hrs	90	120
								Hours per unit
								SS	0.24
1. Determine the unit cost for each job using direct labor hours to apply overhead.								TT	0.37
a. determine the predetermined rate			$20.50	per hour
b. apply the rate to the two products			Model SS:	$1,845.00	Model TT:	$2,255.00		overhead per unit
c. calculate total unit cost of each product			Model SS:	$18.92	Model TT:	$22.10		ss	$4.92
								tt	$7.52
2. Determine the unit cost for each job using the 4 activity drivers (round amounts to 2 decimal places).
a. determine the 4 activity rates
b. apply the rates to the two products
c. calculate total unit cost of each product