Sales volume (units) Price Unit Variable Costs of Licensing & Patent fees Unit Variable Cost of Direct Labor & Materials Unit Contribution Margin (before overhead) Unit Profit Margin After Deducting Overhead Eyepieces 24,000 $64.00 8.00 40.00 $16.00 ($5.00) Binoculars 21,000 $80.00 20.00 32.00 $28.00 $1.75 Camera Lens 7,000 $150.00 25.00 80.00 $ 45.00 $10.00 1.2 1.5 2.0 Labor hours / unit The unit contribution margin is computed by subtracting the units cost of licensing and patent fees and direct labor and materials from the selling price. Currently, the firm incurs $1,300,250 in overhead costs annually. It allocates this overhead among product lines using the number of labor hours used by each product line. Determine the overhead allocation rate which Zeus is currently using to assign overhead costs and then calculate the total cost per unit using that rate. (Hint: if you have done this correctly, then the Price minus the Total Unit Cost should equal the profit per unit reported above for each of the 3 products) Step 1. Total direct labor hours producing eyepieces? X Step 2. Total direct labor hours producing binoculars? X Step 3. Total direct labor hours producing camera lens? X Step 4: Total direct labor hours producing all 3 products + + Step 5: Overhead rate per direct labor hour: divided by Step 6: Overhead per unit for eyepieces Check your answer by subtracting it from the contribution margin per unit. You should get the profit margin per unit Step 7: Overhead per unit for binoculars Check your answer by subtracting it from the contribution margin per unit. You should get the profit margin per unit Step 8: Overhead per unit for camera lens X Check your answer by subtracting it from the contribution margin per unit. You