Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here:

a. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product.

b. Compute the manufacturing cost per unit for each product.

Annual production in units Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours Total manufacturing overhead costs are as follows: Mathematical 50,000 $150,000 $ 50,000 2,500 25,000 50 1,000 Financial 100,000 $300,000 $100,000 5,000 50,000 50 500 Machining costs Setup costs Inspection costs Total $375,000 120,000 105,000