Ivanhoe Company manufactures two types of safety strobe lights, one that is visible for one mile and one that is visible for two miles. Manufacturing overhead has been applied on the basis of direct labor costs. Ivanhoe Company has gathered some activity information and is interested in implementing an activity-based costing system. The company wants all overhead costs to be allocated to products. The overhead cost pools and activity drivers are as follows: Activity Pool Overhead Costs Total Driver Usage Machine setup $47,040 800 setups Assembly 51,000 15,000 machine hours Total overhead costs $98,040 Other product information follows: One-Mile Two-Miles Units produced 21,500 13,500 Direct material $6 per unit Direct labor $8 per unit $8 per unit $10 per unit Direct labor cost 21,500 15,500 Machine setups 300 500 Machine hours 5,500 9,500 (a) Your answer is correct. Using the traditional method, calculate the predetermined overhead rate as a percentage of direct labor cost. (Round answers to 2 decimal places, e.g. 52.75.) Overhead rate $ (b) (c) eTextbook and Media Your answer is correct. 2.65 per direct labor hour Attempts: 1 of 4 used Using the activity-based costing approach, determine the two activity rates. (Round answers to 1 decimal places, e.g. 2.5.) Setup activity rate 58.8 per setup eTextbook and Media Assembly activity rate 3.40 per machine hour Attempts: 1 of 4 used * Your answer is incorrect. Using the activity-based costing approach, determine the unit product cost for the one-mile light. (Round answers to 2 decimal places, e.g. 52.75.) Product cost $ 64.85 per unit