Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Maintenance. ... Materials handling Machine setups Inspections .. $ 20,000 30,000 70,000 $10,000 15,000 5,000 25,000 $55,000 Cost Driver Machine hours Material moves Machine setups Inspection hours $120,000 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours .. Materials moves.. Machine setups Inspection hours. 10,000 3,000 700 5,000 1,500 50 1,000 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Slacks president, Charles Slack, is trying to evaluate the company's product mix strategy regarding two of its five product models, ZX300 and SL500. The company has been using a company-wide overhead rate based on machine hours but is considering switching to either department rates or activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models: ZX300 SL500 Direct materials cost..... Direct labor cost... Machine hours (Fabrication). Machine hours (Finishing) Materials moves.. Machine setups Inspection hours. $12,000 $ 5,000 500 200 30 5 30 $18,000 $ 4,000 700 100 50 9 60 Required a. Determine the cost of one unit each of ZX300 and SL500, assuming a company-wide overhead rate is used based on total machine hours. b. Determine the cost of one unit of ZX300 and SL500, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments. Determine the cost of one unit of ZX300 and SL500, assuming activity-based overhead rates are used for maintenance, materials handling, machine setup, and inspection activities. d. Comment on the results of these cost calculations. c