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 120,000 360,000 ------ Prime costs $9,840,000 $40,320,000 $50,160,000 Machine hours 120,000 600,000 720,000 Engineering hours 400 3,600 4,000 Receiving orders 200 600 800 Inspection hours 900 1,800 2,700 Overhead costs: Machining $6,480,000 Engineering 1,840,000 Receiving 192,000 Inspecting products 459,000 Required: 1. Calculate the four activity rates. Machining rate $ 10 per machine hour Engineering rate $ 420 per hour Receiving rate $ 370 per order Inspecting rate $ 120 per hour 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. Unit cost Basic $ per unit Advanced $ per unit Calculate the overhead cost per unit. Round your answers to the nearest cent. Overhead Cost Basic $ per unit Advanced $ per unit 3. What if consumption ratios instead of activity rates were used to assigned costs? Show the cost assignment for the inspection activity. Cost assignment Basic $ Advanced $