using a traditional cost system, compute the applied overhead per unit for each product.

Annville Beverage Company makes two products in their Annville factory. They have used a traditional cost accounting system for the application of overhead to the products. Currently they use direct labor hours as an application base. The product Can incurred 165,000 direct labor hours, and Bottle incurred 49,500 direct labor hours. They are considering converting to an activity-based costing system. The estimated data for their Year 1 operations is summarized below: Activity Level Activity Center Cost Cost Driver Cans Bottles Units 550,000 165,000 Material handling $528,000 Pounds 110,000 66,000 Production orders $99,000 # of Orders 110 110 Product redesign $275,000 # of changes 55 220 Plant utilities $2,530,000 Machine hours 165,000 88,000 Total Overhead $3,432,000