1 How much is the overhead rate per unit for A95 under current traditional costing?

2 How much is the overhead rate per unit for B95 under current traditional costing?

Becton Dickinson is the biggest ventilator manufacturer in the world. The company has received a special offer from the government to produce two models of the ventilators: A95 and B95 for Covid 19 patients. Estimates so far show that about 6% of people who have COVID-19 get critically sick and need to use the ventilator. You have been asked to prepare a costing report based on traditional absorption costing (using the number of units for allocating overhead costs) and activity-based costing (ABC) to determine the accurate production costs for these two new ventilators. The available information concerning the budgeted operations appears below: Unit cost information A9S B95 Budgeted units to produce 10,000 4,000 Number of parts needed (per unit) 50 60 Price of parts (per part) $500 $600 Direct labour time needed to produce per unit (minutes) 20 22 Labour hourly rate $90 S120 From the centre's management information system, you extract the following information on activities, costs, and activity drivers for the current period: Activity Expected Cost Machine set-up (number of set ups) $8,000,000 Materials ordering (number of orders) $6,000,000 Machine hours (hours) $5,400,000 Injection moulding (batches) $3,500,000 Number of Product design $1,000,000 Product movements (number of movements) $4,500,000 Customer order number of orders) $360,000 Online monitoring security (hours) $350,000 Total Overhead $29,110,000 Activity drivers Number of machine set-ups Number of material orders Machine hours Injection moulding (batches) Number of Product design Number of product movements Customer order number of orders) Online monitoring Security (hours) Cost hierarchies Batch level Batch level Batch level Batch level Product level Product level Customer level Facility level A95 150 1,400 800 15 20 B95 250 2,600 1,000 20 30 9,000 1.000 3,500 6,000 800 3,500