An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea. It came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are listed as follows:

			Expected Activity
Activity Cost Pool and Activity Measure		Estimated Overhead Cost	Deluxe	Regular	Total
Purchase orders (number of orders)	$	60,000	500	1,000	1,500
Rework requests (number of requests)		280,000	800	2,000	2,800
Product testing (number of tests)		240,000	7,000	3,000	10,000
Machine related (machine-hours)		2,500,000	4,500	8,000	12,500
	$	3,080,000

Compute the activity rate for each of the activity cost pools.

Activity Cost Pool	Activity Rate
Purchase orders	$	per order
Rework requests	$	per request
Product testing	$	per test
Machine-related	$	per MH

3.	Assume that actual activity is as expected for the year. Using activity-based costing, do the following:

a.	Determine the total amount of overhead that would be assigned to each model for the year.

	Total amount of overhead
Deluxe	$
Regular	$

b.	Compute the unit product cost for one unit of each model. (Round your final answers to 2 decimal places.)

	Unit product cost
Deluxe	$
Regular	$