Computing Product Costs Using Activity-Based Costing: Petrov Company identified the following activities, estimated costs for each activity, and identified cost drivers for each activity for this coming year. (These are the first three steps of the activity-based costing model). Activity Cost Driver Estimated Annual Estimated Annual Cost Driver Overhead Costs Activity Production setup Number of production $ 60,000 100 production runs runs Materials handling Yards of material 140,000 10,000 yards purchased purchased Quality control Number of inspections 80,000 800 inspections Total $280,000 The company produces two products, MX1 and MX2. Information about these products of the month of March follows: MX1 MX2 Direct materials cost per unit Direct labor costs per unit Overhead cost per unit Product cost per unit Units produced 1,000 units 700 units Actual cost driver activity levels for the month of March are as follows: MX1 MX2 Number of production runs 3 6 Yards of materials purchased 550 230 Number of inspections 40 10 Required: a. Using the estimates for the year, compute the predetermined overhead rate for each activity (this is step 4 of the activity-based costing process)