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Alrex company is using an activity-based costing (ABC) system. The company produces and sells two...

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Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and Pro. The company consists of two departments: Production (where all manufacturing activities are taken) and Marketing (which engages in selling and admin activity only). The ABC system includes in unit product costs all costs easily associated with units. In addition, in the ABC system, there are four major indirect activities: Machine Setups, Special Processing, Factory Supervision, and Customer Relation. The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHs) are given below for one unit of the product, as well as the total units produced and sold. Product Basic Pro Price $180 $320 DM DLHs $501 $80 Hourly Wage-DL $10 $12 Shipping Cost $1 $4 Units 6,000 4,000 The company collected the data for ABC as follows: Activity Cost Pool Activity Measure Estimated OH cost Activity measures used Basic Pro 60 120 6,000 10,000 Machine Setup Special Processing Factory Supervision Customer Relation (10 customers) # of setups Machine hours DLH # of customers $ $ $ $ 472,500 360,000 224,000 240,000 Under the ABC system, what is the unit product cost for Basic? (Choose the closest amount.)

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