The Following Production Information Has Been Gathered from the Records

The following production information has been gathered from the records of the New Processes Manufacturing Company:
Product: Alpha Zeta
Units Produced 1,500 7,500
Direct material cost / unit $ 10 $ 22
Direct labor cost / unit 14 28
Direct labor hours / unit 1 2
Production machine setup 3 times 3 times
Engineering changes 1 time 2 times
Additional production information is as follows:
• Total setup costs (a part of total manufacturing overhead)= $21,500
• Total engineering changes (a part of total manufacturing overhead)= $9,500
• Total annual overhead cost = $288,750
• Total annual direct labor hours = 16,500
Required:
A.Calculate the ABC overhead allocation rate using the cost drivers given above.
B.Calculate the total cost per unit for each product using activity-based costing for the overhead allocation.