Drill Master Corp. produces two products: saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows:

Activity

Budgeted Costs

Activity Base

Stamping

$$200,000$

Machine hours

Assembly

$400,000$

Labor hours

Setup

$36,000$

Number of setups

$$

Activity Base

Saws

Drills

Total

Machine hours

$3,000$

$1,000$

$4,000$

Labor hours

$20,000$

$10,000$

$30,000$

Number of setups

$12$

$8$

$20$

Units produced

$500$

$600$

$$

a$.$ Determine the activity rate for each activity.

b$.$ Determine the factory overhead to be allocated to EACH unit of product. Round to the nearest cent. Show work!!