JedIT courses Ga Activity-based costing - 15 minutes Blizzard Corporation plans to make snowshoes. The company currently wants to make two models: Flat terrain and Mountain terrain. The company is planning to use activity-based costing to apply its estimated $300,000 of overhead costs to its products. The company has the following information about its overhead: Expected activity Activity (cost driver) Estimated MOH Total Flat Mountain Assembly (labour $150,000 8,000 5,000 3,000 hours) Quality control 100,000 4,000 2,200 1,800 inspection hours) Testing (number of 50.000 250 150 100 tests) $300,000 The following costs data is known: Flat terrain Mountain terrain The following costs data is known: Flat terrain Mountain terrain Direct materials $50 $90 Direct labour $25 $45 Number of units 2,500 1,250 The company is planning to sell the flat terrain model for $180 and the mountain terrain model for $275. Required: a) Compute the activity rates for each activity b) Determine the expected unit cost of the terrain model C) Determine the expected unit cost of the mountain model