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 b Regular Deluxe Total Units produced 150,000 450,000 Prime costs $10,800,000 $47,700,000 $58,500,000 Machine hours 150,000 750,000 900,000 Engineering hours 500 4,500 5,000 Receiving orders 200 600 800 Inspection hours 800 1,600 2,400 Overhead costs: Machining $7,200,000 Engineering 2,000,000 Receiving 200,000 Inspecting products 336,000 Required: 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. Unit cost Regular Deluxe per unit per unit Calculate the overhead cost per unit. Round your answers to the nearest cent. Regular Overhead Cost per unit Deluxe 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