Exercise 17-15 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce 39.975 standard units and 65.840 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 ook Activity Cost Pool Budgeted Cost Activity 1 $120,900 Activity 2 $128,000 Activity 3 $107,880 Cost Driver Standard Deluxe 2,500 5,250 4,500 5,500 3,000 2,800 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 Activity Expected Costo Expected Costs Expected Activity Driver Activity Rate 7.750 $ 1 000.00 120,9001 128,000 107,8801 14 500 900.00 $ $ 5,800 1,900.00