A high end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers, the two products use two overhead activities, with the following costs:
Setting up equipment....................$3,000
Machining...................................$15,000
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.

Calculate the overhead cost per unit for each of Outstanding Computers computer using overhead rates based on machine hours and setup hours.
a. $3.99 per unit
b. $5.75 per unit
c. $4.88 per unit
d. $6.10 per unit

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Excellent Laptops Outstanding Computers Direct Labor Direct Materials $25,000 $20,000 3,000 850 $10,000 $5,000 3,000 Expected Production in Units Machine Hours 2,000 80 75 Setup Hours