Machine setups - $130 per setup Soldering - $2.25 per joint

Quality control - $40 per inspection Shipments - $220 per shipment

Purchase orders - $75 per order Machine related - $8 per machine hour

	Product X-20			Product Y-30
	Expected Activity	Amount of OH		Expected Activity	Amount of OH
Machine setups	xx setups	$130,000		600 setups
Quality control	xx inspect	160,000		5,000 inspections
Purchase orders	xx orders	63,000		360 orders
Soldering	xx joints	135,000		140,000 joints
Shipments	xx shipments	88,000		200 shipments
Machine related	xx mach hrs	240,000		40,000 mach hrs.
Total overhead costs		$816,000

2. The firm believes that it cannot raise prices on either of these 2 products in the short-term, but will investigate whether specific cost initiatives should be undertaken.

1. Calculate the per unit cost per activity
2. Next, identify 2 activity costs (from above) that you would suggest that Hill Mfg investigate first.
3. Why did you pick these 2 costs? Discuss the reasoning behind your choices do not simply say the cost was high. Think about what is causing the high cost.