Question 3 International Steel Company has budgeted manufacturing overhead costs of $1,971,000. 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 Activity Material handling Number of moves Purchase orders Number of orders Product testing Number of tests Machine set-up Number of set-ups Machining Machine hours Estimated Overhead $294,000 $105,000 $432,000 $330,000 $810,000 42,000 moves 1,400 orders 3,600 tests 5,000 set-ups 100,000 machine hours Each unit of the products requires the following: $200 N Direct materials costs Direct labour costs Purchase orders Machine set-up Product testing Machining Material handling Soft Steel Hard Steel $300 $120 $60 3 10 4 100 100 4 in m 6 (a) Under traditional product costing using machine hours, calculate the total manufacturing cost per unit of both products. (Round answers to 0 decimal places, e.g. 1525.) Soft Steel Hard Steel Total manufacturing cost per unit