Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below.

		Regular		Deluxe		Total
Units produced		140,000		420,000
Prime costs		$11,200,000		$49,560,000		$60,760,000
Machine hours		140,000		700,000		840,000
Engineering hours		200		1,800		2,000
Receiving orders		500		1,500		2,000
Inspection hours		900		1,800		2,700
Overhead costs:
Machining		$10,920,000
Engineering		800,000
Receiving		440,000
Inspecting products		513,000

Required:

1.Calculate the four activity rates.

Machining rate	$fill in the blank 1per machine hour
Engineering rate	$fill in the blank 2per hour
Receiving rate	$fill in the blank 3per order
Inspecting rate	$fill in the blank 4per hour

2.Calculate the unit costs using activity rates.Round your answers to the nearest cent.

	Unit cost
Regular	$fill in the blank 5per unit
Deluxe	$fill in the blank 6per unit

Calculate the overhead cost per unit.Round your answers to the nearest cent.

	Overhead Cost
Regular	$fill in the blank 7per unit
Deluxe	$fill in the blank 8per unit

3.If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity.

	Cost assignment
Regular	$fill in the blank 9
Deluxe	$fill in the blank 10