I solved the problems, but when checking the overhead cost per unit, I found answers that were significantly different than mine. I used the overhead allocated total for MX1 and MX2, then divided it by units produced. Our text had the units produced in a different location, so I believe it throws other students off kilter.

Activity	Cost Driver	Estimated Annual Overhead Cost	Estimated Annual Cost Driver Activity
Production setup	# of production runs	$60,000	100 production runs
Materials handling	Yards of material purchased	140,000	10,000 yards purchased
Quality Control	# of inspections	80,000	800 inspections
Total		$280,000
			The company produces two products, MX1 and MX2. Information about these products of the month of March follows:
		MX1	MX2
Direct materials cost per unit		$20.00	$30.00
Direct labor costs per unit		$15.00	$45.00
Overhead cost per unit		$13.50	$11.17
Product cost per unit		$48.50	$86.17
Units Produced		1,000 units	700 units
Actual cost driver activity levels for the month of March are as follows:
		MX1	MX2
Number of production runs		3	6
Yards of material purchased		550	230
Number of inspections		40	10
Required:
a. Using the estimates for the year, compute the predetermined overhead rate for each activity (this is step 4 of the activity-based costing process).
b. Using the activity rates calculated in requirement a and the actual cost driver activity levels shown for March, allocate overhead to the three products for the month of March (this is step 5 of the activity-based costing process).
Template for part (a)
Activity	Cost Driver	Estimated Overhead Costs	Estimated Cost Driver Activity	Predetermined Overhead Rate
Production Setups	Number of production units	$60,000	100 production runs	$600 per production run
Materials Handling	Yards of materials purchased	140,000	10,000 yards purchased	$14 per yard produced
Quality Control	Number of Inspections	80,000	800 inspections	$100 per inspections
Total		$280,000
Template for part (b)
	. MX1		MX2
Per-determined Overhead Rate	Cost Driver Activity	Overhead Allocated	Cost Driver Activity	Overhead Allocated
$600 per productions run	3	$1,800	6	$3,600
$14 per yard purchased	550	$7,700	230	$3,220
$100 per inspections	40	$4,000	10	$1,000
Total Allocated		$13,500		$7,820