Question 3 International Steel Company has budgeted manufacturing overhead costs of $1,873,000. It has allocated overhead on a plant-wide basis to its two products (soft steel and hard steel) using machine hours, which are estimated to be 100,000 for the current year. The company has decided to experiment with activity-based costing and has created five activity cost pools and related activity cost drivers as follows: Activity Centre Cost Driver Estimated Estimated Activity Overhead Material handling Number of moves $294,000 42,000 moves Purchase orders Number of orders $105,000 1,400 orders Product testing Number of tests $429,000 3,900 tests Machine set-up Number of set-ups $325,000 5,000 set-ups Machining Machine hours $720,000 100,000 machine hours Each unit of the products requires the following: Soft Steel Hard Steel $300 $200 $120 $60 Direct materials costs Direct labour costs Purchase orders Machine set-up Product testing Machining Material handling 5 10 100 100 4. (c) Your answer is partially correct. Try again. Calculate the total manufacturing cost per unit for both products under ABC. (Round per cost driver to 2 decimal places, e.g. 25.25 and final answers to 0 decimal places, e.g. 1,525.) Soft Steel Hard Steel Total manufacturing cost per unit using ABC 1953 2337