$ $ Units produced & sold per year Sales Revenue Prime Cost # of Direct Labor Hours # of Machine hours # of Set Ups # of Inspection runs # of packing orders Product Data Model A Model B 20,000 200,000 600,000.00 $ 6,000,000.00 100,000.00 $ 1,000,000.00 140,000 300 000 20,000 180.000 160 600 1.400 9,000 81,000 Manufacturing Overhead Costs: Machining $ 160,000.00 Setup costs $ 180,000.00 Inspection costs $ 140,000.00 Packing Costs $ 180,000.00 Total $ 660,000.00 Model A Model B Simple Cost Allocation Plant-wide MOH Rate Allocated MOH Direct Materials & Direct Labor Allocated MOH Total Product Costs Product Cost (CGS) per unit Selling Price per unit CGS per unit Gross Profit per Unit Activity-Based Costing Model A Model B Activity Rates Machining Setup costs Inspection costs Packing Costs Allocated MOH Direct Materials & Direct Labor Allocated MOH Total Product Costs Product Cost (CGS) per unit Selling Price per unit CGS per unit Gross Profit per Unit 3