MK Ltd. manufacture baskets. The company uses activity based costing to allocate indirect costs to products. Its activities and related data are as follows:

7.

8.

Activity	Budgeted Monthly Cost of Activity	Allocation Base
Materials handling	500,000	Number of purchase orders

Assembling 980,000

Direct labour hours

The company produced two styles of basket in July: the standard basket and the wicker basket. Data for each as follows:

... Section A continues on the next page...

4

Product

Total units produced

Total direct materials costs

Total number of purchase orders

Total assembling direct labour hours

Standard basket

15,000 220,000 2,000 22,000 Wicker basket 20,000 158,000 1,000 100,000

What is the per unit manufacturing cost of the wicker basket (round to the nearest cent)?

a) 56.40 b) 48.67 c) 48.50 d) 75.20