Problem 6-12 (Part Level Submission)

The Cheesecake Shoppe is a national bakery that is known for its strawberry cheesecake. It makes 12 different kinds of cheesecake as well as many other types of bakery items. It has recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to its strawberry cheesecake and the ABC cost pools:

Strawberry Cheesecake:
	Annual production		18,400	units
	Direct materials per unit		$11
	Direct labor per unit		$3

Cost Pool		Cost			Cost Driver
Materials ordering		$56,000			Number of purchase orders
Materials inspection		73,340			Number of receiving reports
Equipment setup		79,200			Number of setups
Quality control		57,200			Number of inspections
Other		133,700			Direct labor cost
Total manufacturing overhead		$399,440

Annual activity information related to cost drivers:

Cost Pool		All Products				Strawberry Cheesecake
Materials ordering		8,000	orders			110
Materials inspection		380	receiving report			60
Equipment setup		2,200	setups			30
Quality control		2,200	inspections			160
Other		$1,910,000	direct labor			$55,200

Suppose that the Cheesecake Shoppe allocates overhead by a traditional production volume-based method using direct labor dollars as the allocation base and one cost pool. Determine the overhead rate per direct labor dollar, direct labor cost and the per unit overhead assigned to the strawberry cheesecake. (Round answers to 3 decimal places, e.g. 15.254.)