The management accountant at Morrison, Incorporated provided the following estimated costs for producing 2,500 units of a specialty product manufactured by the firm: Direct materials$ 10,000 Direct labor (1 hour per unit)5,000 Unit-level support costs10,000 Batch-level support costs5,000 Product-level support costs3,000 Facility-level support costs7,000 The company believes that direct labor hours are the most appropriate cost driver for assigning overhead costs to its product. Required: Compute the predetermined overhead rate for this company. Compute the specialty product's total estimated cost per unit.
