LifeCam Medical produces various titanium orthopedic bone plates for trauma injuries. It has three different product lines (TS1, IFO, and Xpan) and uses activity-based costing to compute the cost of the three product lines. The ABC system employs three indirect cost pools. One pool is based on the grams of titanium in each product. Another pool is based on the number of machine milling minutes used to produce each product. And the third cost pool is allocated based on the amount of direct labor dollars in each product. The following table summarizes the operating data and the computation of ABC product costs:

The three cost pools in the ABC system have three ABC rates that were computed by taking all the costs in the cost pool divided by the total cost driver in the pool (i.e., total grams of titanium). So, for example, the cost pool based on grams of titanium per unit has an ABC rate of $17.00 per gram of titanium. Product TS1 has 40 grams of titanium per unit, so each unit of TS1 is allocated $680 (40 × $17). TS1 is charged for the milling cost pool at $72 per milling minute. Since each unit of TS1 requires 12 milling minutes, TS1's milling cost is $864 (12 × $72). All factory overheads not included in the gram and milling ABC cost pools are assigned to products at the rate of $2.53 per direct labor dollar. TS1 has $48 direct labor dollars, so its cost includes $121.44 of other overheads ($48 × $2.53).
The current ABC system has been under development and refinement for the last three years. The CFO is tired of all the bickering over how many cost pools to use, what are the right cost drivers, and which costs should be included in the cost pools. She decides to eliminate the ABC system and return to the simpler system where all factory costs are allocated to the three products using a single factory wide allocation base of direct labor dollars.
Compute the unit manufacturing cost of the three products using a single overhead rate where the allocation base is direct labor dollars.

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Храп TSI IFOR Number of units produced 2,300 1,200 900 Grams of titanium per unit Milling minutes per unit Direct materials per unit Direct labor per unit Allocated cost per gram of titanium Allocated cost per milling minute Overhead rate/Direct labor $ 40 25 30 12 28 37 $85.00 $130.00 $185.00 $48.00 $17.00 $83.00 $17.00 $102.00 $17.00 $72.00 $2.53 $72.00 $2.53 $72.00 $2.53 IFOR ABC Unit Manufacturing Cost Direct labor TSI Храп $102.00 $48.00 85.00 $83.00 Direct material 130.00 185.00 425.00 Allocated cost based on grams of titanium Allocated cost based on milling minutes Overhead cost based on direct labor $ 680.00 510.00 864.00 2,016.00 209.99 2,664.00 258.06 121.44 Total ABC cost per unit $1,798.44 $2,863.99 $3,719.06