Reference no: EM132853546

Question - Lyon Productions manufactures two products, Chevalier and Dame. Estimates for the company's products for next year are provided below: Chevalier Dame Estimated Production Volume 6 000 4 000 Direct Material Cost $30 / unit $50 / unit Direct Labour per Unit 3 hours @ $12 / hour 4 hours @ $12 / hour The company's estimated overhead of $400 000 can be identified with three major activities: order processing ($75 000), machine processing ($280 000) and product inspection ($45 000). These activities are driven by number of orders processed, machine hours, and inspection hours respectively. Estimated activity levels for the next year are as follows: Chevalier Dame Total Orders Processed 300 200 500 Machine Hours 36 000 44 000 80 000 Inspection Hours 4 000 16 000 20 000 Required: Assuming that Lyon Productions uses activity-based costing (ABC) to apply overhead to production, calculate the total cost per unit for Chevalier and Dame if the estimated production volume is attained.