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What is the manufacturing overhead per unit of executive

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Fantastic Ltd. manufactures two types of storage cabinets, Standard and Executive. The management accountant has determined that the firm's overhead costs arises from three activities as follows: Manufacturing setups (activity driver: number of setups): $1,200,000 Machine processing (activity driver: number of machine hours): $2,500,000 Product shipping (activity driver: number of outgoing shipments): $800,000 Other production information is as follows:

                               Standard Executive

Budgeted volume (units) 10.000 3,000

Setups Machine hours 9.000 16,000

Outgoing shipments 100

Question 1: Under an activity-based costing system, what is the manufacturing overhead per unit of Executive cabinets? Show your answer to 2 decimal places.

Reference no: EM132633803

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