b. Assign activity costs to each product and determine the unit activity cost, using the activity rates from part (a). Round unit costs to the nearest cent.

	Custom		Standard
Setups Total	___??___		___??___
Purchase Orders Total	___??___		___??___
Inspections Total	___??___		___??___
Components Total	___??___		___??___
Total product cost	___??___		___??___
Unit volume	___??___		___??___
Unit cost	___??___		___??___

c. Assume that each product required one direct labor hour per unit. Determine the per-unit cost if factory overhead is allocated on the basis of direct labor hours. Round your answer to the nearest cent.___??___

___??___ indicates a blank to be filled

Activity-Based Costing Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities-production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities: Activity Activity Cost Activity Base Production setup $ 68,750 Number of setups Procurement 147,000 Number of purchase orders (PO) Quality control 168,000 Number of inspections Materials management 166,500 Number of components Total $550,250 The activity-base usage quantities for each product are as follows: Setups Purchase Orders Inspections Components Unit Volume Custom 300 1,100 2,200 500 2,000 Standard 250 300 600 400 2,000 Total 550 1,400 2,800 900 4,000 a. Determine an activity rate for each activity. Activity Rates Production Setup Procurement Quality Control Materials Management Activity cost 5 $ - Activity base Activity rate /setup /PO $ /inspection $ /component