Stewart Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plant-wide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. From the following information, determine the overhead from both production departments allocated to each unit of Product B if the company uses a multiple department rate system.

	Overhead	Direct Labor Hours (dlh)	Product
			A	B
Painting Dept.	$248,000	10,000 dlh	16 dlh	4 dlh
Finishing Dept.	72,000	10,000	4	16
Totals	$320,000	20,000 dlh	20 dlh	20 dlh
	========	==========	======	======

$214.40 per unit

$99.20 per unit

$320.00 per unit

$425.60 per unit

Phelan Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base information, along with the estimated activity-base information, is provided below.

		Activity Cost		Activity Base
Procurement		$ 360,000		Number of purchase orders
Scheduling		240,000		Number of production orders
Materials handling		480,000		Number of moves
Product development		720,000		Number of engineering changes
Production		1,420,000		Machine hours
	Number of Purchase Orders		Number of Production Orders		Number of Moves	Number of Engineering Changes	Machine Hours		Number of Units
Disk drives	4,000		300		1,400	10	2,000		2,000
Tape drives	2,000		150		600	5	8,000		4,000
Wire drives	12,000		800		4,000	25	10,000		2,500

Determine the activity rate for product development per change.

$28,000

$72,000

$18,000

$36,000