Walker Texas produces two kinds of recliners, Standard and Deluxe. Information about the two products follows.
Deluxe Standard
Units produced 15,000 30,000
Direct materials cost per unit 80
Direct labor cost per unit 10
Direct labor hours required for production 45,000 30,000
Machine hours required for production 60,000 45,000
Batches 1,000 1,000
Production costs are as follows:
Activity Cost Activity Driver
Machining 510,000 Batches
Total overhead cost $1,350,000
Under activity-based costing, the total product cost per unit for the Deluxe recliner is: