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Question - The following data are available for product X and Y: Units produced is 2,000 units of X and 160,000 units of Y; Direct materials cost per unit is 300 and 10 for X and Y, respectively; Direct labor cost is 280,000 for X and 560,000 for Y; Direct labor hours is 2,800 for X and 5,600 for Y; Number of set ups for X and Y is 45 each; Design hours is 3,000 and 5,000 for X and Y, respectively. Overhead cost totaled 3,528,000 consisting of Set up cost related amounting to 1,350,000; Design cost related of 1,400,000 and other overhead cost for the remaining amount. At present, the company is using traditional costing which uses direct labor hours to allocate overhead. The management consider using ABC system for more accurate allocation of overhead. The number of set ups and number of designs hrs. will be used to allocate the new cost pools while the direct labor hours for the remaining overhead cost. What is the total product cost per unit of X under Traditional costing?
a. 1,215.20
b. 1,028.15
c. 2,056,300
d. 4,512,010
e. 1,088.15
f. None of the above
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