A manufacturer reports the following for its two products: Product $1$ and Product $2.$ Product $1$ requires $2$ direct labor hours per unit and Product $2$ requires $3$ direct labor hours per unit. The company budgets $5,420$ direct labor hours to be used, based on expected production of $2,080$ units of Product $1$ and $420$ units of Product $2.$

Activity Budgeted Cost $($Activity Driver$)$

Setup $ $136,400(22$ machine setups$)$

Handling parts $57,280(16,000$ parts$)$

Inspection $91,500(250$ inspections$)$

Total budgeted overhead $ $285,180$

Actual Activity Driver Usage Product $1$ Product $2$

Setups $1012$

Parts $10,0006,000$

Inspections $40210$ First, use a plantwide overhead rate based on $5,420$ direct labor hours to compute the overhead cost per unit for each product. Next, use activity$-$based costing to a$)$ compute overhead activity rates, and b$)$ allocate overhead cost to each product and compute overhead cost per unit for each product. Use activity$-$based costing to a$)$ compute overhead activity rates, and b$)$ allocate overhead cost to each product and compute

overhead cost per unit for each product.

Note: Do not round intermediate calculations. Round the final answers to $2$ decimals.

a$.$ Compute overhead activity rates