required: Determine the following: 1) overhead applied to each product line 2) total manufacturing cost per product 

Ex. 5-3 Computing unit costs using ABC ABC Company has budgeted 84,000 machine hours in the production of 3 products lines for the coming year. Other budgeted information is summarized below: Machine related costs Materials receiving orders costs Production orders/Engineering costs Production run/Set up costs Inspection costs P2,520,000 1,255,680 1,080,000 112,200 576,000 The following is a summary of actual data for the current year. P1 P2 P3 Units produced 28,000 18,000 6,000 Production costs per unit Materials P60 P45 39 Direct labor 36 42 MH required per unit 1.5 2 1 33-0 Activities per product line Receiving orders 48 120 600 Production orders 42 36 Set up Inspections 12 24 24 12