Problem 1 (40 points) SSU Company makes two types of chairs, a hand-built lounge chair and a folding beach chair. The company had used a job-order costing system and applies overhead on the basis of direct labor hours. The company expects to produce 40,000 lounge chairs and 100,000 beach chairs next year. SSU Company has begun changing to an activity b costing allocations for year's production: system. The company has reported the following results from the first-stage cost Estimated and Actual Activity levels are same. Activity Estimated Overhead Cost Lounge Chairs Beach Chairs Labor related Machine related 100,000 DLH 30,000 MH 4,000 Setups 200,000 DLH 60,000 MH 1,000 Setups Machine setups$1.4180,000 $450,000 730,000 Total $1,4 Required: If the company is using ABC system, what is the overhead cost per unit for each product