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Business, 15.10.2020 09:01 portedon8644

Bloom’s has the following estimates for the upcoming year: Activity Cost Pool Estimated Overhead Cost Activity Rate
Machine-hours $63,450 $2.70 per machine-hour
Machine setups $45,900 $170 per setup
Product testing $119,000 $119 per test

Cost and activity information for two of Bloom’s products is as follows:

P34 W85
Direct materials $33,500 $29,750
Direct labor $18,500 $26,000
Machine-hours 1,470 1,170
Machine setups 22 77
Tests 47 47

Number of units
produced during the year 10,000 25,000

Required:
Compute the unit product cost for product P34.

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