Acme Company manufactures product A that sells for $9.85 each. Forecasted sales for the coming

Acme Company manufactures product A that sells for $9.85 each. Forecasted sales for the coming year are 500,000 units that require 2 inspections per unit. They manufacture a second product, B that has an expected run of 300,000 units, and requires 4 inspections per unit. The two products required the same amount of time on the factory floor during manufacture. Acme Company has projected the following costs to support the expected sales for Product A:

Direct materials for A $1,625,000

Direct labor for A 750,000

Overhead:

Unit level for A 675,000

Total Product level, to be allocated on number of inspections needed 825,000

Total Facility level, to be allocated on % of time on factory floor 400,000

What is Acme's expected unit cost for Product A?