Randel Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Information is presented below: Cost Drivers by Product Activity Cost Pool Cost Driver Estimated Overhead Budget Deluxe Ordering and Receiving Orders $130,000 600 400 Machine Setup Setups 297,000 500 400 Machining Machine hours 1,000,000 150,000 100,000 Assembly Parts 1,600,000 1,200,000 800,000 Inspection Inspections 300,000 550 450 Compute the overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. (Round 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

Activity Cost Pool             Cost per activity         Budget          Delux

Ordering and receiving                 $130               $78,000       $52,000

Machine setup                                $330              $165,000    $132,000

Machining                                        $4.0               $600,000   $400,000

Assembly                                         $0.8               $960,000   $640,000

Inspection                                        $300              $165,000    $135,000

                                                                              $1,968,000  $1,359,000

                                              Budget             Cost

Total Overhead cost       $1,968,000    $1,359,000

Units                                    700,000      200,000

Overhead cost per unit       $2.81            $6.80

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