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FuFu Faucets Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White. Production occurs in 1,000-unit batches of brass, chrome, and white

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FuFu Faucets Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White. Production occurs in 1,000-unit batches of brass, chrome, and white faucets, respectively. The following additional data apply for the BRASS FAUCET: Projected Production, 1000-unit batches 30 Hours per 1000-unit batch: Setup hours: 1.0 Inspection hours: 30 PER UNIT data: Selling price $40 Direct materials $ 8 Direct labor $15 T erheadcastingdito v aarthe estimated Total overhead costs and total activity levels for the year are estimated as follows: Setups: $465,500; 95 total setup hours Inspections: $405,000; 2,700 total inspection hours Required: A. Determine the activity rate for setup costs and inspection costs, respectively. B. Using the ABC system, for the brass style of faucet, compute (1) the estimated overhead costs per unit, and (2) the estimated gross profit per unit. Assume the projected production and sales in units for the brass style of faucet is 30,000. (Hint: remember that there are 30, 1000-unit batches for the brass faucet.) Paragraph B I U

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