Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:

	Overhead Item	Expected Cost			Cost Driver	Expected Quantity
	Setup costs	$	50,000		Number of setups	250
	Ordering costs		30,000		Number of orders	1,500
	Maintenance		100,000		Machine hours	2,000
	Power		20,000		Kilowatt hours	4,000
	Total Overhead	$	200,000

Total direct labor hours budgeted = 2,000 hours.

The following actual data applies to one of the products completed during the year:

Product X
	Direct materials	$	5,000		Number of setups	5
	Direct labor	$	3,000		Number of orders	50
	Units completed		100		Machine hours	50
	Direct labor hours		100		Kilowatt hours	500

If Orange, Inc. uses direct labor hours to assign overhead, the unit product cost for Product X will be:

Multiple Choice

• $70.00.

• $60.00.

• $180.00.

• $90.00.

• $80.00