R4 Friends Co. (R4F) uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. R4F has provided their costing department the following information from this years budget relating to the production of these two products:

	ABC		XYZ
Units to be produced	40,000		60,000
Machine-hours expected	1,000		2,000
Direct labor-hours expected	2,000		3,000
Materials handling (number of moves)	600		700
Machine setups (number of setups)	200		150

The following costs are expected to be incurred throughout the year, and are related to the cost drivers being measured:

Direct Labor Wages	$500,000
Materials Handling	40,000
Labor-related overhead	420,000
Machine setups	70,000

*Show your work for each:

A.- What is the rate that will be used to apply Materials handling overhead costs?

B- What is the rate that will be used to apply Labor-related overhead costs?

C- What is the rate that will be used to apply Machine Setup overhead costs?

D- What is the total expected overhead per unit allocated to product XYZ?

E- What is the expected overhead per unit allocated of product ABC?