$2.$ An intern suggested that the company use activity$-$based costing to cost its products. A team was formed to investigate this idea, and it came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities follow:

Activity Cost Pool and

Activity Measure Estimated

Overhead

Cost Activity

Luxury Standard Total

Purchase orders $($number of orders$)$ $ $509,0881,0001,4002,400$

Rework requests $($number of requests$)308,4008001,2002,000$

Product testing $($number of tests$)1,023,3605,0007,00012,000$

Machine related $($machine hours$)3,616,00015,00025,00040,000$

$ $5,456,848$

Compute the activity rate $($i$.$e$.,$ predetermined overhead rate$)$ for each of the activity cost pools.

$3.$ Assume that actual activity is as expected for the year. Using activity$-$based costing, do the following:

a$.$ Determine the total amount of overhead that would be applied to each model for the year. $($Do not round intermediate calculations and round your final answers to nearest whole dollar amount.$)$

b$.$ Compute the unit product cost for one unit of each model. $($Do not round intermediate calculations and round your answers to $2$ decimal places.$)$