Rooney Sporting Goods Corporation makes two types of racquets, tennis and badminton The company uses the same facility to make both products even though the processes are quite different The company has recently converted its cost accounting system to activity based costing The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of 2018 (during which Rooney made 69,000 tennis racquets and 29,000 badminton racquets) Direct Cost Tennis Racquet (TR) Badminton Racquet (BR) Direct materials $ 15 60 per unit $ 14 00 per unit Direct labor 34 50 per unit 24 90 per unit Category Estimated Cost Cost Driver Amount of Cost Driver Unit level $ 783,000 Number of inspection hours TR 14,800 hours BR 12,200 hours Batch level 264,600 Number of setups TR 84 setups BR 42 setups Product level 152,500 Number of TV commercials TR 3 BR 2 Facility level 630,000 Number of machine hours TR 30,200 hours BR 39,800 hours Total $ 1,830,100 Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected Engineers who set up equipment for both products are paid monthly salaries TV commercial fees are paid at the beginning of the quarter Facility level cost includes depreciation of all production equipment Required Compute the cost per unit for each product If management wants to price badminton racquets 30 percent above cost, what price should the company set Compute the cost per unit for each product (Round intermediate calculations and final answers to 2 decimal places ) Type of Product Cost per Unit Tennis Racquet Badminton Racquet If management wants to price badminton racquets 30 percent above cost, what price should the company set (Round intermediate calculations and final answer to 2 decimal places ) Price of badminton racquets

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Rooney Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the

Rooney Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of 2018 (during which Rooney made 69,000 tennis racquets and 29,000 badminton racquets).

Direct Cost	Tennis Racquet (TR)			Badminton Racquet (BR)
Direct materials	$	15.60	per unit	$	14.00	per unit
Direct labor		34.50	per unit		24.90	per unit

Category	Estimated Cost			Cost Driver	Amount of Cost Driver
Unit level		$	783,000	Number of inspection hours	TR: 14,800 hours; BR: 12,200 hours
Batch level			264,600	Number of setups	TR: 84 setups; BR: 42 setups
Product level			152,500	Number of TV commercials	TR: 3; BR: 2
Facility level			630,000	Number of machine hours	TR: 30,200 hours; BR: 39,800 hours
Total		$	1,830,100

Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected. Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility-level cost includes depreciation of all production equipment. Required

Compute the cost per unit for each product.
If management wants to price badminton racquets 30 percent above cost, what price should the company set?

Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.)

Type of Product	Cost per Unit
Tennis Racquet
Badminton Racquet

If management wants to price badminton racquets 30 percent above cost, what price should the company set? (Round intermediate calculations and final answer to 2 decimal places.)