TC Company makes four types of patio sets: wood, plastic, wicker, and aluminum. Data regarding the four products follows:

Additional information about the company follows:

• Wood sets require \($40\) in direct materials per unit, plastic sets require \($20,\) wicker sets require \($60\) and aluminum sets require \($50\).
• The direct labor wage rate for all production except for the aluminum sets is \($15\) per hour. Aluminum sets are more difficult to produce, so the wage rate for direct labor is \($20\) per hour.
• Wood and wicker sets go through a special painting process.
• Wood, plastic, and wicker sets all go through the sanding process.

The ABC system used for allocating Manufacturing Overhead Costs has the following activity pools:

What is the total cost per unit under the ABC system for wicker patio sets?

a. \($45.00\)

b. \($135.00\)

c. \($147.50\)

d.  \($180.00\)

Transcribed Image Text:

DLHs/unit Annual Production Wood.. 2.0 1,000 units Plastic. 1.0 2,000 units Wicker. 5.0 5,000 units Aluminum. 3.0 10,000 units