Cooper’s Components uses an activity-based costing system for its product costing. For the last quarter, the following data relate to costs, output volume, and cost drivers:
Total Overhead Costs
$
Machinery (driven by machine hours)
172,000
Set-ups (driven by production runs)
66,000
Materials handling (driven by store orders)
45,000
Total overhead
283,000
Product
A
B
C
Production and sales
4,000 units
3,000 units
2,000 units
Number of production runs
12
5
8
Number of stores orders
12
6
4
per unit
per unit
per unit
Direct costs
$25
$35
$15
Machine hours
5
2
3
Direct labour hours
4
2
4
What is the total overhead cost assigned to each product?
What is the overhead cost per unit for each product?
What is the total cost per unit for each product?
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