Paulus LtdPaulus Ltd

produces two

productsminus

Alpha and Beta

minus

which are produced in batches. Total annual overheads are

pound1 comma 200 comma 0001,200,000

and, in the forthcoming year, the business expects to make and sell 40,000 Alpha and 15,000 Beta products.

Details of the activities and cost drivers for overheads are as follows:

Activity (and cost driver)		Cost		Annual number of activities
		000		Total		Economy		De Luxe
Number of machine setups		150		400		40		360
Number of handling movements		300		2,500		1,500		1,000
Number of orders for boughtin parts		450		2,000		1,000		1,000
Other production (machine hours)		300		20,000		14,000		6,000
Total		1,200

Calculate a suitable overhead cost per unit for each product using activity based costing. (All workings to nearest whole number.)

Overhead cost per unit (Economy) =

poundnothing.

Overhead cost per unit (De Luxe) =

poundnothing.