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19. (15 points) ABC Lennox Industries manufactures two products: A and B. A review of the company's accounting records revealed the following per-unit costs and production volumes Production volume (units) Direct material Direct labor: 2,500 5,000 60 $40 S 2 hours at $12 3 hours at $12 24 36 Manufacturing overhead 2 hours at S93 3 hours at $93 279 ,000 direct labor Manufacturing overhead is currently computed by spreading overhead of $1,860,000 over 20 procedures, and the following data are available: hours. Manageme nt is considering a shift to activity-based costing in an effort to improve the firm's accounting 93 Ph Cost Pool Cost 20 120 100 S 240,000 Number of setups Setups General factory Machine processing 1,500,000 Direct labor hours 5,000 15,000 20,000 2,200 800 3,000 -120,000 Machine hours Lennox determines selling prices by adding 40% to a product's total cost. Required A. Compute the per-unit overhead cost of product B if the company uses the Cost-Pools (activity-based costing) for applying overhead. ((20/120)x8240,000)/5000 units S8 OH from Setup Pool: ((15000 20000jxS1,500,000)/5000-s225 OH from gen factory pool [(800 3000)x 120.000]/ 5000 units $6.40 from machine proc pool B. Compute B's total per-unit cost. $60 DM+36 DL+16+450 + 12.80 $574.80

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