Calculation of cost per unit of sewing machines under the current costing system: Sewing Easy Ltd Particulars Basic Model Advance Model Amount Amount Direct material costs

of units 1600 1500 Cost per unit $564.84 $1,025.30 (Refer: Excel Sheet) Working note: 1 Allocation of all indirect costs as per machine hours: Total indirect costs: Particulars Amount Inspection $20,000.00 Assembly $90,000.00 Production Scheduling $ 1,05,000.00 Machine set up $35,000.00 Total $ 2,50,000.00 particulars Basic Model Advance Model Total Machine hours 4600 3400 8000 Allocation: particulars Basic Model Advance Model Indirect Costs allocated $ 1,43,750.00 $1,06,250.00 Q