Mrs Brown makes two products, the Bird and the Gruber. She currently uses machine hours as the basis on which to allocate overheads. She intends to adopt Activity Based Costing in the near future. The accountant has analysed overheads costs associated with inspections, materials handling and assembly as follows: Activity

Costs

Cost driver

Inspection

190401

Number of inspections

Materials handling

49025

Number of issues from stores

Assembly

121820

Machine hours

Total overheads

361246

Information about activities related to the two products, in total, are as follows:

Total

Bird

Gruber

Inspections

2,428

607

1,821

Issues from stores

2,258

1,129

1,129

Machine hours

33,600

20,160

13,440

Production of the Bird is 9786 units per year. Production of the Gruber is 17133 units per year.

What is the total overhead cost per unit of the Bird, using Activity Based Costing?