Part 271	Part 342
Production	500,000	100,000
Selling Price	$31.86	$24.00
Prime costs per unit	$9.53	$8.26
Number of production runs	100	200
Receiving orders	400	1,000
Machine hours	125,000	60,000
Direct labor hours	250,000	22,500
Engineering hours	5,000	5,000
Material moves	500	400

Overhead is allocated using a plant-wide rage based on direct labor hours.

Overhead Cost Pools
Setup costs	$240,000
Material handling costs	$900,000
Machine costs	$1,750,000
Receiving costs	$2,100,000
Engineering costs	$1,500,000
General plant costs	$500,000
Total	$6,990,000
Part 3: Compute overhead and gross margin using Activity-based costing.
Per unit	Part 271	Part 342
Overhead	$	$
Gross Margin:
Selling Price	$	$
Prime costs	$	$
Overhead	$	$
Gross margin	$	$
Total Profit	$	$