Lucern Company reports the following for its overhead costs for the year.

ActivityBudgeted Cost Budgeted Activity Driver

Engineering support $ 28,500 75 design changes

Electricity 41,160 3,430 machine hours

Setup 60,800 380 setups

1. Compute the activity rate for each activity cost pool using activity-based costing.

2. The company's Pro model used these activities to produce 1,000 units during the year: 3 design changes, 120 machine hours, and 14 setups. Allocate overhead costs to the Pro model and compute overhead cost per unit using activity-based costing.