Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 36,775 standard units and 62,640 deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted Activity of Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost $96,100 $96,000 $89,320 Cost Driver Standard Deluxe 2,500 5,250 4,500 5,500 3,000 2,800 1 Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Activity Expected Costs Expected Activity Driver Activity Rate 1 $ 2 96,100 96,000 89,320 3 Standard Activity 1 Activity Driver Activity Rate Allocated Cost 2 3 Deluxe Activity Driver Activity Rate Allocated Cost Activity 1 N 3