Answer:
a.$3.99 per unit
Step-by-step explanation:
The computation of the overhead cost per unit is shown below:
Allocated setting up equipment
= $3,000 × (75 ÷ 75 + 80)
= $1,451.61
Allocated machining
= $15,000 × (2,000 ÷ 2,000 + 850)
= $10,526.31
Total overhead is
= $10,526.31 + $1,451.61
= $11,979.92
Now the overhead cost per unit is
= $11,979.92 ÷ 3,000
= $3.99 per unit