Question

Blue Spruce Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below:

						Est. Use of Cost Drivers
Activity Cost Pools		Cost Driver		Est. Overhead		Budget		Deluxe
Ordering and Receiving		Orders		$154,000		600		400
Machine Setup		Setups		321,300		500		400
Machining		Machine hours		1,033,000		150,000		100,000
Assembly		Parts		1,634,000		1,200,000		800,000
Inspection		Inspections		324,000		550		450

Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round per machine hour and per part values to 3 decimal places, e.g. 52.711. Round overhead cost per unit to 2 decimal places, e.g. 12.25 and cost assigned to 0 decimal places, e.g. 2,500.)

		Overhead cost per unit
Budget		$enter a dollar amount per unit rounded to 2 decimal places	per unit
Deluxe		$enter a dollar amount per unit rounded to 2 decimal places	per unit