Problem 5 Big Motor Inc. provides the following information: Assembling Packing Direct materials $300 per unit $50 per unit Direct labor $500 per unit $200 per unit Activity Allocation Base Estimated overhead Assembling Packing cost Setup Number of batches 80 batches 10 batches $9,000 Production Direct labor hours 9,500 hours 500 hours $5,000 Testing Number of tests 8,000 tests 2,000 tests $12,000 The company produced 1,000 units during the year. Calculate the total cost per unit of the Assembling division under the activity-based costing system. a) $800.50 b) $822.35 c) $901.65 d) $101.00