1. Kula Company Ltd manufactures two products, Flora and Fauna. Estimates for the company's products for next year are provided below:

 

	Flora	Fauna
Estimated production volume	3 000	4 000
Direct material cost	$60 / unit	$90 / unit
Direct labour per unit	3 hours @ $25 / hour	4 hours @ $25 / hour

 

Kula's estimated overhead of $1 500 000 can be identified with three major activities: order processing ($280 000), machine processing ($1 020 000) and product inspection ($200 000). These activities are driven by the number of orders processed, machine hours, and inspection hours, respectively.

 

 Estimated activity levels for the next year are as follows: 

	Flora	Fauna	Total
Orders processed	500	300	800
Machine hours	39 000	46 000	85 000
Inspection hours	7 000	18 000	25 000

       

Required:

Assuming that Kula Company Ltd uses activity-based costing to apply overhead to production, calculate the unit manufacturing costs of the Flora and Fauna products if the estimated manufacturing volume is attained.