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 120,000 360,000 Prime costs $10,320,000 $41,760,000 $52,080,000 Machine hours 120,000 600,000 720,000 Engineering hours 300 2,700 3,000 Receiving orders 200 600 800 Inspection hours 800 1,600 2,400 Overhead costs: Machining $10,080,000 Engineering 1,410,000 Receiving 208,000 Inspecting products 240,000 Required: 1. Calculate the four activity rates Machining rate per machine hour Engineering rate per hour Receiving rate per order Inspecting rate per hour