Casual Cuts Inc. has total estimated factory overhead for the year of $225,000, divided into four activities: cutting, $90,000; sewing, $22,500; setup, $80,000; and inspection, $32,500. Casual Cuts manufactures two types of men's pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows:

Cutting Sewing Setup Inspection

Jeans. 500dlh. 1,000dlh 250setups 100inspections

Khakis. 1,000 500 750 400

Total 1,500dlh 1,500dlh 1,000setups 500inspections

Each product is budgeted for 10,000 units of production for the year.

a.Determine the activity rates for each activity.

Cutting. $per dlh

Sewing. $per dlh

Setup. $per setup

Inspection. $per inspection

b.Determine the factory overhead cost per unit for each product, using activity-based costing. Round your answers to two decimal places.

Jeans $

Khakis $