Cogswell Cogs, Inc. estimates its overhead for the upcoming year to be $1,693,500 and will use machine hours as its base to apply overhead and estimates total machine usage will be 112,000 hours and estimates direct labor hours will be 43,500 hours. Cogswell makes three different models of its product – Basic, Premium and Deluxe. The company anticipates making 10,000 units of Basic, 5,000 units of Premium and 1,000 units of Deluxe. The following information relates to Direct Material and Direct Labor for each unit for each model – Deluxe 10 pounds @ $440/pd 3.5 hours @ $18/hour Basic Premium 5 pounds @ $4/pound 2.5 hours @ $16/hour 8 pounds @ $4.20/pound 3 hours @ $16/hour 8 machine hours Direct Material Direct Labor Overhead 6 machine hours 12 machine hours Mr. Cogswell, the President and CEO of Cogswell Cogs, Inc. has been reading about Activity-based Costing (ABC) and thinks that perhaps the company should adopt it. He asked you to gather up information regarding the cost drivers in the factory and here is what you found - Costs Cost Driver Basic Premium Deluxe $36,000 $66,000 Production runs Deliveries Material handling Setup costs Supervisors' salaries $550,000 50 deliveries 25 deliveries 15 deliveries 24 runs 16 runs 10 runs 55,000 hours 54,000 hours 2000 hours 40,000 hours 48,000 hours 1000 hours 30,000 hours 18,000 hours 600 hours DL hours $660,000 Machine hours $72,000 $220,000 Floor space $134,000 Utilities Inspection costs Inspection hours 4,000 feet 2,000 hours 9,000 feet 5,000 hours Rent 7,000 feet Engineering Engineering hours 3,000 hours Using ABC costing, calculate total overhead dollars to be charged to each product, then at bottom calculate the total cost per unit, circle your final answer. Cost Pools Basic Premium Deluxe Material handling Setup costs Supervisors' salaries Utilities Inspection costs Rent Engineering Total Overhead in $ Total Overhead per unit What is TOTAL COST per unit for each model using ABC? Basic - Premium - Deluxe -