Blizzard 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 $300,000 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)	$150,000	8,000	5,000	3,000
Quality control (inspection hours)	100,000	4,000	2,200	1,800
Testing (number of tests)	50,000	250	150	100
	$300,000

The following costs data is known:

	Flat terrain	Mountain terrain
Direct materials	$50	$90
Direct labour	$25	$45
Number of units	2,500	1,250

The company is planning to sell the flat terrain model for $180 and the mountain terrain model for $275.

Required:

a) Compute the activity rates for each activity

b) Determine the expected unit cost of the terrain model

c) Determine the expected unit cost of the mountain model