The Wagon Co produces three products, A, B, C, all made from the same material. Until now, it has used traditional product cost system to allocate overheads to its products. The company is now considering an ABC system in the hope that it will improve profitability. Information for the three products for last year is as follows: A 2 Products A Production Units 15,000 12.000 18,000 Sales Units 14,200 16,000 16,000 Selling price per unit $7.50 $12.00 $13.00 Raw material usage (Kg) per unit 2 3 4 Direct labor hours per unit 0.1 0.15 0.2 Machine hours per unit 0.5 0.7 0.9 Number of production runs per annum 16 12 8 Number of setups per annum 80 60 120 Number of purchase orders per annum 180 100 150 Number of deliveries per annum 120 90 150 The price for raw materials remained constant throughout the year at $1.20 per Kg. Similarly, the direct labor cost for the whole workforce was $14.80 per hour. The annual overhead costs were: Cost Element $ Machine setup Purchase Orders Delivery costs Direct labor $102,120 5% Indirect labor $160,000 15% 20% Direct material $165,600 Indirect material $65,000 4% 8% Machine depreciation $120,000 5% 6% Factory rent $90,000 2% 4% Calculate the ABC product cost per unit for Product C