B.) Using the driver usage below, and the activity rates from the last question, calculate the amount of indirect cost allocated to product 1

C.) assuming the company made 40,000 of product one calculate calculate the indirect cost per unit. Round to two decimals.

Activity Driver Assembly Machine Hours Packaging Number of Units Purchasing Number of Requisitions Set-up Number of Set-ups Quality Control Inspection Hours # of Drivers Incurred Product 1 4,000 8,000 900 40 400 Activity Estimated Cost Driver Estimated # of Drivers Assembly $224,000 Machine Hours 80,000 Packaging $99,840 Number of Units 249,600 Purchasing $41,600 Number of Requisitions 8,000 Set-up $83,200 Number of Set-ups 400 Quality Control $32,000 Inspection Hours 2,000 Total $480,640 a. Calculate the activity rate for each indirect cost pool: Activity Rate Estimated cost Estimated drivers Assembly; $224,000/80,000 - $2.30 per machine hour Packaging;$99,840 / 244,600 -8 0.40 por unit Purchasing : 541,600 ( 2000 - $5.20 per requisitions Set up $83,200/400 = $206.00 per set up Quality Control ; $ 32.000 (2000 = $16.00 per inspection hour