Wilkerson company supplied products to manufacturers of water purification equipment. The company had started with a unique design for valves but soon had established a major presence in the high volume pump product line and more customized flow controller line. Wilkerson had always used a simple cost accounting system. Each unit of product was charged for direct material and labor cost. The current rate for labor was $25 per hour. The overhead costs were allocated to products as a percentage of direct labor cost. Currently, the rate was 300%. Following is the per unit product cost analysis:

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