Activity Based Costing

The overhead cost is now being allocated based on the following table below:

Category	Plant and Equipment	Management	Purchasing	Sales and Shipping
Total Cost	$700.00	$2,200.00	$600.00	$1,500.00
Cost Allocation	Square feet	Labor hours	Purchase orders	Customer orders
Total units used	10000	2400	130	91
Product A	1000	500	10	5
Product B	2000	450	35	20
Product C	3000	690	60	41
Product D	4000	760	25	25

Determine the following based on the original production plan (product A -700, B-350, C-80 and D-42):

Find:

1. Total allocated overhead cost?
2. Profit per product?
3. Unit profit per product?
4. Total Profit of production plan?
5. Do you have any suggestions for the Sompter Meter Companys production plan?