Activity-Based Costing and Product Cost Distortion Gourmet Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Gourmet Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: Assembly Department $341,550 Test and Pack Department 141,550 Total $483,100 The direct labor information for the production of 4,400 units of each product is as follows: Assembly Department Test and Pack Department Blender 2,500 dlh 7,500 dlh Toaster oven 7,500 2,500 Total 10,000 dlh 10,000 dlh Gourmet Appliance used direct labor hours to allocate production department factory overhead to products. The management of Gourmet Appliance Company has asked you to use activity-based costing to allocate factory overhead costs to the two products. You have determined that $46,550 of factory overhead from each of the production departments can be associated with setup activity ($93,100 in total). Company records indicate that blenders required 60 setups, while the toaster ovens required 130 setups. Each product has a production volume of 4,400 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 $ per dlh Test and Pack Activity $ per dlh Setup Activity $ per 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 $ $