Refer to the data given in Problem 1. The company has implemented an activity-based costing system for its manufacturing overhead costs with the activity cost pools and activity driver data below.

Activity	Activity Cost ($)	Total	Activity Drivers
			Basic system	Advanced system
Machine set up	100 000	200 setup	50 setup	150 setup
Material receiving	60 000	80 000 kilograms	30 000 kilograms	50 000 kilograms
Inspection	80 000	1600 inspections	700 inspections	900 inspections
Engineering	140 000	7 000 EH	3 000 EH	4 000 EH
Total Overhead	800 000
MH = Machine hours
EH = Engineering hours

Southern Cross plans to produce 1 000 units of each model of fax machine

Question

1. For each activity, calculate the cost per unit of activity driver (e.g. the cost per setup)

2. Determine, under activity-based costing, the total overhead to be assigned to each product line.