Health Solutions, Inc. makes two types of health bars and is implementing an ABC system. Previously, all overhead totaling $81,000 had been applied on the basis of machine hours (9,000 total for the period; 5,000 for Nutty Bars and 4,000 for Raisin Bars). The company produces 22,500 units of Nutty Bars and 42,284 units of Raisin Bars. Additional data is as follows:Cost Driver andEstimatedEstimated LevelOverheadUse of Cost DriverUse of Cost DriverCost Poolof ActivityCostby Nutty Barsby Raisin BarsEquipment Setup100 setups$20,00065 setups35 setupsMaterials Ordering140 orders$21,00095 orders45 ordersQuality Control200 inspections$22,000150 inspections50 inspectionsMixing9,000 machine hours$18,0005,000 machine hours4,000 machine hours What is the overhead cost per unit for Nutty Bars when all overhead is applied based on machine hours using one plantwide rate? (Hint: Start by calculating the predetermined overhead rate per machine hour.)
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