Using ABC to compute product costs per unit Jaunkas, Corp., manufactures mid-fi and hi-fi stereo receivers. The following data have been summarized:
Mid-Fi Hi-Fi
Direct materials cost per unit $ 400 $ 1,300
Direct labor cost per unit 400 300
Indirect manufacturing cost per unit ? ?
Indirect manufacturing cost information includes the following:
Activity Allocation Rate Mid–Fi Hi–Fi
Setup $1,700/per setup 39 setups 39 setups
Inspections $ 400/per hour 45 hours 15 hours
Machine maintenance $ 10/per machine 1,900 machine 1,200 machine
hour hours hours
The company plans to manufacture 200 units of the mid-fi receivers and 250 units of the hi-fi receivers.
Requirement
Calculate the product cost per unit for both products using activity-based costing.

James jones is the owner of a small retail business operated as a sole proprietorship. during 2017, his business recorded the following items of income and expense: revenue from inventory sales $ 147,000 cost of goods sold 33,500 business license tax 2,400 rent on retail space 42,000 supplies 15,000 wages paid to employees 22,000 payroll taxes 1,700 utilities 3,600 compute taxable income attributable to the sole proprietorship by completing schedule c to be included in james’s 2017 form 1040. compute self-employment tax payable on the earnings of james’s sole proprietorship by completing a 2017 schedule se, form 1040. assume your answers to parts a and b are the same for 2018. further assume that james's business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. calculate james's 2018 section 199a deduction.