Activity	Cost	Allocation Base
Setup	$105,000	Number of setups
Machine maintenance	65,000	Number of machine hours
Total indirect manufacturing costs	$170,000

	Product A	Product B	Total
Direct labor hours	6,000	6,000	12,000
Number of setups	20	180	200
Number of machine hours	1,600	2,400	4,000

Day Corp. is considering the use of activity-based costing. The following information is provided for the production of two product lines:

Day plans to produce 400

units of Product A and 250 units of Product B. Compute the ABC indirect manufacturing cost per unit for each product. (Round your answers to the nearest cent.)

Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest cent.)

Compute the total activity-based costs allocated to Product A, and then compute the cost per unit for Product A. Finally, compute the totalactivity-based costs allocated to Product B then compute the cost per unit for Product B