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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

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!!

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