The following information is provided for the Orbit Antenna, Corp., which manufactures two products: Lo-Gain antennas, and Hi-Gain antennas for use in remote areas.

Orbit plans to produce 75 Lo-Gain antennas and 150 Hi-Gain antennas.
Requirements
1. Compute the ABC indirect manufacturing cost per unit for each product.
2. Compute the indirect manufacturing cost per unit using direct labor hours from the single-allocation-basesystem.

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Cost Driver Activity Cost Number of setups Setup 57,000 Machinc maintenance 27,000 Machine hours Total indirect manufacturing costs $4 84,000 Total Lo-Gain Hi-Gain Direct labor hours 1,400 3,600 5,000 Number of setups 30 30 60 Number of machine hours 1,800 1,200 3,000