Wilson Inc. manufactures and sells two products: Product O6 and O7. Data concerning the expected production of each product and the expected total direct labor hours (DLH) required to produce that output is as follows:

DLH Total

# Units per unit DLH

Product O6 200 9.0 1,800

Product O7 800 10.0 8,000

Total Direct Labor-Hours 9,800

The cost of direct labor is $17.50 per hour. The direct materials cost for both products O6 and O7 is $206.50 per unit.

The company has an activity-based costing system with the following pools, measures, and expected activity:

		Est. Overhead Cost	Expected Activity
Activity Cost Pools	Activity Measures		Product O6	Product O7	Total
Labor-related	Labor hours	$133,770	1,800	8,000	9,800
Production orders	Orders	$18,501	400	300	700
Order size	Machine hours	$145,180	3,000	3,100	6,100
		$297,451

16. Compute the activity rates and allocation basis for each activity cost pool (points count double for this exercise):

17. What is the overhead cost per unit under activity-based costing for product O6 (points count double for this exercise):

18. What is the total unit product cost for product O6 under activity-based costing?