Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 90,000 270,000 Prime costs $6,480,000 $29,700,000 $36,180,000 Machine hours 90,000 450,000 540,000 Engineering hours 300 2,700 3,000 Receiving orders 400 1,200 1,600 Inspection hours 900 1,800 2,700 Overhead costs: Machining $6,480,000 Engineering 1,380,000 Receiving 480,000 Inspecting products 270,000 Required: 1. Calculate the four activity rates. Machining rate 12 per machine hour Engineering rate Receiving rate Inspecting rate S 460 per hour $ 300 per order 100 per hour