Activity-Based Product Costing Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Regular Deluxe Total Units produced 140,000 420,000 Prime costs $12,040,000 $47,040,000 $59,080,000 Machine hours 140,000 700,000 840,000 Engineering hours 200 1,800 2,000 Receiving orders 200 600 800 Inspection hours 900 1,800 2,700 Overhead costs: Machining $6,720,000 Engineering 1,180,000 Receiving 272,000 Inspecting products 432,000 Required: 1. Calculate the four activity rates. Machining rate Engineering rate per machine hour per hour 1. Calculate the four activity rates. Machining rate Engineering rate Receiving rate Inspecting rate per machine hour per hour per order per hour 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. Regular Deluxe Unit cost per unit per unit Calculate the overhead cost per unit. Round your answers to the nearest cent. Overhead Cost Regular Deluxe per unit per unit 3. If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity. Regular Deluxe Cost assignment