Activity Machine setup Parts handling Quality inspections Total budgeted overhead Budgeted Activity Driver Cost $ 21,000 (20 machine setups) 16,800 (16,000 parts) 25,200 (100 inspections) $ 63,000 Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours Product A 2,100 units $ 31 per unit $ 51 per unit 2 per unit Product B 420 units $ 41 per unit $ 61 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 5,250 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Setups Parts Inspections Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts 60 inspections Complete this question by entering your answers in the tabs below. a. Compute overhead activity rates Activity Activity Rate Machine setup 1,050.00 per setup Parts handling 1.05 per part Quality inspection $ 252.00 per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Allocated Cost Activity Product A Product B Machine setup Parts handling Quality inspection Total allocated cost $ 0 $ Units produced Overhead cost per unit c. Product cost per unit using activity-based costing Product Cost per Per Unit Unit Product A Product B 0