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Sonoma Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Activity Cost

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Sonoma Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver s.OverheadBudget Deluxe Orders Setups Machine hours1,000,000 150,000 Number of Parts 1,600,000 Inspections s 120,000 400 400 100,000 800,000 450 600 297,000 500 1,400,000 300,000 550 Instructions Compute the estimated overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. Round your answer to the nearest cent. Assume Sonoma used a more traditional OH allocation method and used only machine hours to allocate MOH. How much overhead would be assigned to each product and what are the estimated unit OH for each product? The company estimates that DM costs for the Budget model are $2.10 per unit and the DL costs are $3.40. The DM costs for the Deluxe model are $9.40 and the DL costs are $4.10. What is the projected product cost for each model? A. B. C

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