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E.EE * Name 1. Toledo Pump Company manufactures two different types of pumps: centrifugal and displacement. The Company uses an activity-based costing system to allocate production overhead costs. The following are the estimated cost data for the period. The number of units to be produced during the period are Centrifugal 1,800 units; Displacement 1,200 units Raw materials and direct labor costs per unit are as follows: Direct Costs per Unit Raw Materials (cost per unit) Direct Labor (cost per unit) Centrifugal $120 $90 Displacement $160 $120 Production overhead costs for the period are as follows: Estimated Cost Cost Driver $84,000 Number of units Category Unit-level overhead costs Product-level overhead costs Facility-level overhead costs Total Use of Cost Driver Centrifugal: 1,800 units Displacement: 1,200 units Centrifugal: 52 parts Displacement: 68 parts Centrifugal: 60% Displacement: 40% $42,000 Number of parts Specified percentage $78,000 $204,000 Required: a. Compute the total cost for each of the two products (including raw materials, labor, and production overhead). b. Compute the costs per unit for each product (round amounts to two decimal places What sales price should be set for each of the two products if Toledo Pump Company seeks to price its products at cost plus 35 percent

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