1. Smith Manufacturing has five activity cost pools and two products (a budget toaster oven and a deluxe toaster oven). Information is presented below: Cost Drivers by Product Activity Cost Pool Cost Driver Est. Overhead Budget Deluxe Ordering and Receiving Orders $ 130,000 600 400 Machine Setup Setups 297,000 500 400 Machining Machine hours 1,000,000 150,000 100,000 Assembly Parts 1,600,000 1,200,000 800,000

1.

Smith Manufacturing has five activity cost pools and two products (a budget toaster oven and a deluxe toaster oven). Information is presented below:

					Cost Drivers by Product
Activity Cost Pool	Cost Driver		Est. Overhead		Budget		Deluxe
Ordering and Receiving	Orders	$ 130,000		600		400
Machine Setup	Setups	297,000		500		400
Machining	Machine hours	1,000,000		150,000		100,000
Assembly	Parts	1,600,000		1,200,000		800,000
Inspection	Inspections	300,000		550		450

Instructions

Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. Round your answer to the nearest cent.