Number of units Machine hours Cheap 25,000 2,500 Tweener 15,000 1,500 Best 5,000 2,000 Total 45,000 6,000 $1,000,000 375,000 $450,000 225,000 $275,000 75,000 $1,725.000 675,000 Direct materials Direct labor Overhead Machining Assembly Total overhead Total costs 900,000 450,000 1,350,000 $3,750,000 Departmental Allocation Method Considering the nature of the production process, the cost accountant of Erie Manufacturing decided to experiment with a department-specific allocation approach, and determined that the Machining Department should use machine hours as the allocation base for overhead assignment while the Assembly Department should use direct labor costs as its allocation base for overhead assignment. Thus, use the department allocation method to determine the TOTAL UNIT COST for each product