Stillwater Company identified the following activities, estimated costs for each activity, and identified cost drivers for each activity for this coming year. These are the first three steps of activity-based costing.

Required

a. Using the estimates for the year, compute the predetermined overhead rate for each activity (step 4 of the activity-based costing process).

b. Using the activity rates calculated in requirement a and the actual cost driver activity levels shown for January, allocate overhead to the three products for the month of January (step 5 of the activity-based costing process).

c. For each product, calculate the overhead cost per unit for the month of January.
Round results to the nearest cent.

d. For each product, calculate the product cost per unit for the month of January.
Round results to the nearest cent.

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Activity Ordering parts Tracking inventory of parts Running machines Inspecting finished products Cost Driver Number of purchase requisitions Number of parts purchased Machine hours Inspections hours Estimated Annual Overhead Costs $ 400,000 Estimated Annual Cost Driver Activity 5,000 purchase requisitions 560,000 80,000 parts purchased 350,000 7,000 machine hours 200,000 1,000 inspection hours Total $1,510,000 The company produces three products: Z1, Z2, and Z3. Information about these products for the month of January follows. Z1 Z2 Z3 Direct materials cost per unit $100 $ 75 $200 Direct labor cost per unit 35 25 70 Overhead cost per unit ? ? ? Product cost per unit ? ? Units produced 250 units 500 units 700 units Actual cost driver activity levels for the month of January are as follows: 21 Z2 Z3 Number of purchase requisitions 50 70 100 Number of parts purchased 4,000 3,300 3,600 Machine hours 330 240 310 Inspection hours 10 50 30