EgoDrone Inc. manufactures two models of Selfie Drones - small toy helicopters which follow users around taking aerial video while the user participates in extreme sports. Whether the user is rafting down a raging river, or renewing their life insurance, all activities can be documented by the products two models: Sport or Pro. The company will use activity-based costing to apply its estimated $350,000 of overhead costs to its products. Information about its overhead follows:

Activity (Cost Driver)		Estimated MOH	Expected Activity
			Total	Sport	Pro
Assembly (Machine Hours)		$40,000	5,000	3,000	2,000
Quality control (# of inspections)		110,000	550	250	300
Machine Setups (# of Setups)		200,000	200	70	130
		$350,000

The following cost data is known:

	Sport	Pro
Direct Materials	$300	$500
Direct Labour	50	80
Number of units produced	250 units	150 units

Required:

1. Compute the activity rates for each activity.
2. Determine the expected unit cost of each product.