Victory Ltd. makes two different types of nuts:Cashews and Pistachios.Data regarding the two types of nuts:

ProductDirect Labour HoursAnnual ProductionTotal Direct Labour Hours

In Kilograms

Cashews4 hours per Kg.20,00045,400

Pistachios6 hours per Kg.15,00035,600

Direct labour hour costs $30.00. Cashews require $36 in direct materials (per Kg) and the pistachios require $45 in direct materials (per Kg).Currently the company uses direct labour hours as its single basis of applying manufacturing overhead.The manufacturing overhead per year is $1,296,000 with $80,000 spent on machine set-ups, $70,000 spent on salting, $15,000 spent on packaging, and the balance spent on other manufacturing overhead.

ActivityActivity MeasureCashewsPistachiosTotal

Machine set-upsNumber of set-ups203050

SaltingMachine Hours 50015002000

PackagingDirect Labour Hours 300 7001000

OtherDirect Labour Hours37,00050,00087,000

REQUIRED:

Calculate the manufacturing overhead allocated in total and per unit of production using activity-based costing to allocate manufacturing overhead for each type of nut

What is the total unit product cost for each type of nut using the traditional and the activity based methods. Show work.