Blitzen Corporation plans to make snowshoes. The company currently wants to make two models: Flat terrain and Mountain terrain. The company is planning to use activity-based costing to apply its estimated $250,000 of overhead costs to its products. The company has the following information about its overhead: Expected activity Activity (cost driver) Estimated MOH Total Flat Mountain Assembly (labour hours) $125,000 6.250 4,000 2.250 Quality control (inspection 75,000 2.500 1.800 700 hours) Testing (number of tests) 50,000 250 175 75 $250.000 The following costs data is known: Flat terrain Mountain terrain $45 585 Direct materials Direct labour $20 $40 1,800 Number of units 4,000 The company is planning to sell the flat terrain model for $150 and the mountain terrain model for $240. Required: a) Compute the activity rates for each activity b) Determine the expected unit cost of the terrain model ) Determine the expected unit cost of the mountain model