The Klamath Corp. produces two products, saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows:

Required:

a. Determine the activity rate for each activity.

Stamping $ 20 per machine hour

Assembly $ 20 per labor hour

Setup $ 2,000 per setup

b. Determine the overhead cost per unit for each product.

Activity: Stamping, Assembly, Setup, Activity Base: Machine hours, Labor hours, Number of setups, Budgeted Costs: $200,000, $400,000, $30,000, Saws: 4,000, 7,000, 3, Activity Base Machine hours Labor hours Number of setups Drills: 6,000, 13,000, 12, Total 10,000 20,000 15