Illustration 1 The cost accountant of ABC Manufacturing attended a workshop on activity-based costing and was impressed by the results. After consulting with the production personnel, he prepared the following information on cost drivers and the estimated volume for each driver. Products Units produced A B C Total 25000 15000 5000 45000 Direct materials Per unit in shs 40 30 55 55 Direct Labour cost/= 15 15 15 Cost driver cost driver volume Total A B C Number of setups 125 75 Machin hours 2500 1500 Direct Labor hours 25000 15000 Number of inspection 50 25 18282 50 250 2000 6000 5000 45000 25 400 The cost accountant also determined how much overhead costs were incurred in each of the four activities as follows: Activity Overhead costs in shs Machining Setup Machining 150,000 750,000 Total of Machining Overhead Cost 900,000 Assembly Assembly Inspectin 360,000 90,000 Total of Assembly Overhead Cost 450,000 Total Overhead Cost Required: 1350,000 1. Determine the cost driver rate for each activity cost pool. 2. Use the activity-based costing method to determine the unit cost for each product.