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		Flexible	Rigid	Total
Purchase orders (number of orders)	$	20,000	100	300	400
Rework requests (number of requests)		10,000	60	140	200
Product testing (number of tests)		210,000	900	1,200	2,100
Machine related (machine-hours)		360,000	1,500	2,500	4,000
	$	600,000

1)

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

purchase orders =

rework requests=

product testing

machine reated=

2) Determine the total amount of overhead that would be assigned to each model for the year (flexible and rigid)

3) Compute the unit product cost for one unit of each model.