Sanyo Company produces programmable and non-programmable calculators and operates at capacity. The following data are presented for your use:

Programmable Non-programmable

Annual production in units	50,000	100,000
Direct materials costs	$ 150,000	$ 300,000
Direct manufacturing labor costs	$ 50,000	$100,000
Direct manufacturing labor hours	2500	5000
Machine-hours	25,000	50,000
Number of production runs-set-ups	50	50
Inspection hours	1000	500

Manufacturing overheads are as follows:

Overhead cost pool Total for both products

Machining costs	$ 375,000
Setup costs	120,000
Inspection costs	105,000

Required

1-Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. (20 marks)

2-Compute the manufacturing cost per unit for each product. (15 marks)

3-How does the activity based costing system help Sanyos managers to better manage their business. (5 marks)