Two-Stage ABC for ManufacturingMeridian Company has determined its activity cost pools and cost drivers to be the following:Cost pools Setup $49,000Material handling 19,200Machine operation 220,000Packing 72,000Total indirect manufacturing costs $360,200Cost drivers Setups 350Material moves 640Machine hours 20,000Packing orders 1,200One product made by Meridian, metal casements, used the following activities during the period to produce 500 units:Setups 20Material moves 80Machine hours 1,900Packing orders 150(a) Calculate the cost per unit of activity for each activity cost pool.
Setup $AnswerMaterial move $AnswerMaterial operation $AnswerPacking $Answer(b) Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round your answer to the nearest cent.
