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A company has two products: standard and deluxe. The company expects to produce 39,975 standard units and 65,840 deluxe units. It uses activity-based costing and

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A company has two products: standard and deluxe. The company expects to produce 39,975 standard units and 65,840 deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted Activity of Cont Driver Activity Cost Pool Budgeted Cost Standard Activity 1 $120,900 2,500 5,250 Activity 2 $120,000 4,500 5,500 Motivity 3 $107,880 3,000 2,800 Deluxe Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate 1 s 2 120,900 128,000 107,880 3 Standard Activity Activity Driver Activity Rate Allocated Cost 1 2 Acthvity Expected Costa Expected Activity Driver Activity Rate $ 2 120,900 128,000 107,880 3 Standard Activity Activity Driver Activity Rate Allocated Cost 1 2 3 Deluxe Activity Activity Driver Activity Rate Allocated Cost 1 2 3 0

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