eeBike Company makes two models of electric bicyclesregular and premiumand wants to further refine its costing system by allocating overhead costs using activity-based costing. The following information is provided for the production of two product lines:

Activity Overhead costs Allocation base

Setup 29,400 Number of setups

Machine Maintenance 15,520 Machine hours

Total Overhead Costs 44,920

Regular module Premium model Total

Direct labor hours 1,000 1,200 2,200

Number of setups 25 80 105

Machine hours 63 34 97

eeBike plans to produce 500 units of regular model and 400 units of premium model.

11. Compute the predetermined overhead allocation rate for setup activity.

12. Compute the allocated overhead cost per unit of regular model. Round to the nearest cents.