Answer:
Total unitary cost= $105.9
Explanation:
<u>First, we need to calculate the activities rates:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Assembly= 505,520 / 47,500= $10.64 per machine-hour
Processing orders= 57,763 / 1,450= $39.84 per order
Inspection= 81,089 / 1,460= $55.54 per inspection-hour
<u>Now, we can allocate overhead to Product L19B:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Assembly= 10.64*1,060= 11,278.4
Processing orders= 39.84*140= 5,577.6
Inspection= 55.54*90= 4,998.6
Total allocated costs= $21,854.6
Unitary allocated overhead= 21,854.6 / 500= $43.71
<u>Finally, the unitary cost and product margin:</u>
Total unitary cost= 44.74 + 17.45 + 43.71
Total unitary cost= $105.9