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Terel, Inc. sells two products - Product A and Product B. This year the company sold 2,000 units of Product A and 10,000 units of

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Terel, Inc. sells two products - Product A and Product B. This year the company sold 2,000 units of Product A and 10,000 units of Product B. Costs for direct materials and direct labor are as follows Product A Producto Direct materials $25 SI Direct labor($12 per hour) 360 $48 Total manufacturing overhead for the year equited $480,000 Tercl uses activity based costing to allocate manufacturing overhead. The company's activity cost pools and related costs and activity are detailed below. Activity cost pools Estimated Expected activity - Expected Activity - Total Expected overhead cost Product A Producto Activity Labor related $ 30.000 10,000 direct labor 40,000 direct lobor 50,000 direct labor hours hour Machine setups 5150,000 3,000 setups 2.000 setups 5.000 stups General factory $250,000 12.000 machine 28.000 machine 40.000 machine hours hours Using the information given above for Tercel,Inc., what is the unit product cost for Product A? hours hours

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