PopUp Company produces two types of toasters, basic and deluxe. For the current period, the company reports the following data:  

Basic Toaster Deluxe Toaster

Volume 20,000 units 5,000 units

Machine Hours 1,000 2,400

Batches 315 125

Engineering Modifications 20 50

Prime Costs $20,000 $30,000

Market Price $25 per unit $60 per unit

Additional Information Follows Costs Driver

Engineering Support $15,900 Engineering Modifications

Electricity 25,000 Machine Hours

Setup costs 33,900 Batches

1) Compute the manufacturing cost per unit of each toaster using the current unit-based approach. Under this system costs are assigned to the toasters on the basis of machine hours.

2) Compute the manufacturing cost per unit of each toaster using an actives-based costing approach