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Donnelly Corp. manufactures two products. The company's budgeted total overhead for 2011 is $350,000; of...

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Donnelly Corp. manufactures two products. The company's budgeted total overhead for 2011 is $350,000; of this amount, $276,000 relates to utilities and depreciation on automated equipment. In 2011, Donnelly expects to produce 200,000 of X and 300,000 units of Y. It takes 3.0 and 1.5 direct labor hours to produce one unit of X and Y, respectively. However, relative to the automated equipment, Product X requires 10 minutes per unit and Product Y requires 1 minute per unit. Product X and Y have unit contribution margins of $5 and $4, respectively. If Donnelly decided to assign the automation-related overhead costs to products based on production time, what would be the automation overhead cost per unit for Product X and Product Y? Product X Product $0.79 $0.26 O $0.55 $0.55 $1.20 $0.12 $0.15 $0.15 $0.45 $0.15

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