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Rapid City Technology, Inc. manufactures chemicals used in agricultural pest control. The controller for Rapid City Technology, Inc. has established the following activity cost pools

Rapid City Technology, Inc. manufactures chemicals used in agricultural pest control. The controller for Rapid City Technology, Inc. has established the following activity cost pools and cost drivers.

Activity Cost Pool Budgeted Overhead Cost Cost Driver Budgeted Level for Cost Driver Pool Rate
Machine setups $ 1,000,000 Number of setups 250 $ 4,000 per setup
Material handling 300,000 Weight of raw material 75,000 Ib. $ 4 per pound
Hazardous waste control 100,000 Weight of hazardous chemicals used 10,000 Ib. $ 10 per pound
Quality control 300,000 Number of inspections 2,000 $ 150 per inspection
Other overhead costs 800,000 Machine hours 40,000 $ 20 per machine hour
Total $ 2,500,000

Required:
1.

Calculate the unit cost of a production order for 100 specially coated containers used in transporting chemicals. In addition to direct material costing $210 per container and direct labor costing $60 per container, the order requires the following:

Machine setups 4
Raw material 800 pounds
Hazardous materials 400 pounds
Inspections 4
Machine hours 60

Q1 Unit cost ? (per container)

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