Microsoft produces two products, Product A and Product B. There are activities are used in their manufacture. These activities are there costs and bases as is follows:

Activity Budgeted costs ACtivity Base

Stamping $330,000 machine hours

Assembly $552,000 labor hours

Setup $40,000 number of setups

Activity Base Product A Product B Total

machine hours 6,500 8,500 15,000

labor hours 11,000 12,000 23,000

number of setups 10 15 25

Units produced 500 800

requirements (round answers to two decimals places)

a.) determine the activity rate for each activity

b.) determine the overhead cost per unit for each product