Acclaim Inc. makes two styles oftrophies, basic anddeluxe, and operates at capacity. Acclaim does large custom orders. Acclaim budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two productiondepartments: forming and assembly. In the formingdepartment, indirect manufacturing costs are accumulated in two costpools, set up and general overhead. In the assemblydepartment, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxetrophies, they are formed in batches of 50.

Forming Department Basic Deluxe Total

Direct materials $37,700 $21,500 $59,200

Direct manufacturing labor 31,200 15,300 46,500

Overhead costs: Set up 7,440

Overhead costs: General overhead 34,410

Assembly Department Basic Deluxe Total

Direct materials $4,800 $15,200 $20,000

Direct manufacturing labor 15,300 14,700 30,000

Overhead costs: General overhead 36,000

Question:

Requirement 3. Calculate the budgeted unit cost of basic and deluxe trophies if Acclaim allocates overhead costs in each department usingactivity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department.

Begin by calculating the budgeted setup rate for the forming department. First select theformula, then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent. Abbreviationsused: DC- Directcost, DL= Directlabor, $= dollar.)

First, I need to choose the right formula from the next list:

Budgeted direct costs

Budgeted labor costs

Budgeted number of batches

Badgeted overhead costs

Budgeted setup costs

Budgeted supervision costs

Formula (number) divide by Formula (number) = number per? (DL$, DC$, per batches)

For example: Budgeted setup costs /Budgeted number of bathes= number (per..)

Please, help me to figure out what formula should be used, and how I need to calculate it.

Thanks.