Pelder Products Company manufactures two types of engineering diagnostic equipment used in construction. The two products are based upon different technologies, x-ray and ultra-sound, but are manufactured in the same factory. Pelder has computed the manufacturing cost of the x-ray and ultra-sound products by adding together direct materials, direct labor, and overhead cost applied based on the number of direct labor hours. The factory has three overhead departments that support the single production line that makes both products. Budgeted overhead spending for the departments is as follows.

Department costs

Engineering design Material handling (parts) Setup

$6,000 $5,000 $3,000

Total Activity

Engineering design Material handling (parts) Setup

3 1,000 15

Pelders budgeted manufacturing activities and costs for the period are as follows.

Product

Activity X-Ray Ultra-Sound

Units produced and sold .................................... 50 100

Direct materials used ....................................... $5,000 $ 8,000

Direct labor hours used ..................................... 100 300

Direct labor cost........................................... $4,000 $12,000

Number of parts used (material handling)....... 400 600

Number of engineering changes (engineering design) 2 1

Number of product setups (Set up)...................... 8 7

The budgeted cost to manufacture one ultra-sound machine using the activity-based costing method is: (NOTE you need to figure out the overhead allocated to ultra sound and then put everything (overhead, DM and DL) on a per unit of ultra sound basis)