Estin Company $($EC$)$ manufactures and sells hardware used in commercial building construction. At the

company's Rivers Edge plant, EC manufactures two versions of one of its most popular products, HW$-10$ and HW$-20.$

EC's accounting system assigns manufacturing overhead using a pre$-$determined overhead rate based on direct labor$-$

costs. This rate varies from plant to plant.

EC's CFO is considering adopting an ABC model for the company's costing systems. However, given the cost

of new systems the CFO believes it would be prudent to test an ABC system at the Rivers Edge plant before deciding

whether or not to role it out company wide.

A study team analyzed the Rivers Edge plant's production processes and identified four cost pools that

captured the main functions related to the source of manufacturing overhead costs. After six months of discussion

and analysis the team made the following forecasts of next year's costs:

For the upcoming year the team had the following forecasted production details for HW$-10$ and HW$-20$:

Direct labor at the Rivers Edge plant is averages an hourly cost of $$38\mathrm{.}00.$

$1.$ What is the pre$-$determined overhead rate per labor dollar based on direct labor costs? Round to the nearest $$0\mathrm{.}001$

$2.$ What is the total production cost per unit of H$10$ using the pre$-$determined overhead rate based on labor costs? Round to the nearest $$0\mathrm{.}001.$

$3.$ If EC adopts ABC $($Activity Based Costing$)$ at the Rivers Edge plant, what is the estimated activity rate per inspections based on the number of raw materials shipments received? Round to the nearest $$0\mathrm{.}1.$