Reference no: EM13612270

Alabama Paper Company manufactures three products (computer paper, newsprint, and specialty paper) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Activity Cost Pool Production $426,000 Setup 189,000 Moving 118,500 Shipping 180,400 Product Engineering 67,200 Total $981,100 The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Number of setups Moving Number of moves Shipping Number of customer orders Product Engineering Number of test runs The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Machine Hours Number of Setups Number of Moves Number of Customer Orders Number of Test Runs Units Computer Paper 3,120 130 300 880 60 7,800 Newsprint 1,990 190 450 2,420 380 4,975 Specialty Paper 1,990 180 750 1,100 160 4,975 Total 7,100 500 1,500 4,400 600 17,750 Each product requires 0.9 machine hour per unit.

Determine the total and per-unit activity cost for all three products. Round per unit answers to the nearest cent. Total Activity Cost Activity Cost per Unit Computer Paper $ $ Newsprint $ $ Specialty Paper $ $