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Oak Electronics manufactures Pokdexes for avid Pokmon collectors. The company offers two models: the Standard and the Trainer. Oak Electronics estimates it will manufacture 25,000
Oak Electronics manufactures Pokdexes for avid Pokmon collectors. The company offers two models: the Standard and the Trainer. Oak Electronics estimates it will manufacture 25,000 units of the Standard and 5,000 of the Trainer model. Management asks Oak's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information: Estimated Overhead Activity Cost Driver Purchasing Number of orders $775,000 Machine setups Number of setups 580,000 Machining Machine hours 3,100,000 Quality control Number of inspections 445,000 Cost Driver Standard Trainer Purchase orders 13,750 11,250 Machine setups 9,000 11,000 Machine hours 60,000 40,000 Inspections 2,250 2,750 Using activity-based costing (ABC), how much is the overhead per unit to be assigned to the Trainer Pokdex model? Please enter your response with a dollar sign and two decimals
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