Activity$-$Based Costing and Product Cost Distortion

overhead is as follows:

The direct labor information for the production of $3,900$ units of each product is as follows:

Four Finger Appliance used direct labor hours to allocate production department factory overhead to products.

If required, round all per unit answers to the nearest cent.

a$.$ Determine the three activity rates $($assembly$,$ test and pack, and setup$).$

b$.$ Determine the total factory overhead and factory overhead per unit allocated to each product using the activity rates in $($a$).$

Product

Total Factory Overhead

Factory Overhead Cost Per Unit

Blender

Toaster oven