Exercise $4-11($Algo$)$ Computing product cost per unit using plantwide method and activity$-$based costing LO P$1,$ P$3$

Consider the following data for two products of Vigano Manufacturing.

ActivityBudgeted CostActivity DriverMachine setup$ $18,000(20$ machine setups$)$Parts handling$14,400(16,000$ parts$)$Quality inspections$21,600(100$ inspections$)$Total budgeted overhead$ $54,000$

Unit InformationProduct AProduct BUnits produced$1,800$units$360$unitsDirect materials cost$ $28$per unit$ $38$per unitDirect labor cost$ $48$per unit$ $58$per unitDirect labor hours$2$per unit$2\mathrm{.}50$per unit

Using a plantwide overhead rate based on $4,500$ direct labor hours, compute the total product cost per unit for each product.

Consider the following additional information about these two products. If activity$-$based costing is used to allocate overhead cost,

$($a$)$ compute overhead activity rates,$($b$)$ allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and$($c$)$ compute product cost per unit for each.

Actual Activity UsageProduct AProduct BSetups$8$setups$12$setupsParts$10,000$parts$6,000$partsInspections$40$inspections$60$inspections