(L.OBJ. 1) Using ABC to compute product costs per unit [15 min] Johnstone, Corp., manuf...

(L.OBJ. 1) Using ABC to compute product costs per unit [15 min]

Johnstone, Corp., manufactures mid-fi and hi-fi stereo receivers. The following data have been summarized:

The company plans to manufacture 75 units of the mid-fi receivers and 325 units of the hi-fi receivers.

Requirement

1. Calculate the product cost per unit for both products using activity-based costing.