Activity-Based Costing and Product Cost Distortion Four Finger Appliance Company manufactures small atchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Assembly Department Test and Pack Department Total FOH $136.000 120.000 $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Test and Pack Department Blender Toaster oven Assembly Department 750 din 2.250 3.000 dih 2.250 dih 750 3,000 dih Total Four Finger Appliance used direct labor hours to allocate production department factory overhead to products. The management of Four Finger Appliance Company has asked you to use activity-based costing to allocate factory overhead costs to the two products. You have determined that $81,000 of factory overhead from each of the production departments can be associated with setup activity ($162,000 in total). Company records indicate that blenders required 135 setups, while the toaster ovens required only 45 setups. Each product has a production volume of 7.500 units. If required, round all per unit answers to the nearest cent. a. Determine the three activity rates (assembly, test and pack, and setup). Assembly Activity 35 Der dih 1540,000-shocopos,000% 3000-3 Test and Pack Activity 13 per dih 1201000-811000 31000/3000 Setup Activity 900 per setup Blenders 135 stups b. Determine the total factory overhead and factory overhead per unit allocated to each product the fact rates in (a). Product Total Factory Overhead Factory Overhead Cost Per Unit Blender 177 X 25.60 X Toaster oven 129,000 17.20