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GUESLIVII 2 (LT PUITILS) A company uses activity-based costing to allocate overhead. The activity cost pools are as follows. Total Estimated Activity Expected Activity Overhead Cost Supporting manufacturing 14 000 direct labour hour $ 12,600 Machine setups 800 setups 31,000 Special processing 4.000 machine hours 190,000 Customer service 50 customers 4,500 Each unit requires $250 in direct material and 15 direct labour hours. The direct labour rate is $20 per hour. The selling price is $1,700 per unit A customer has placed an order for three units that will require a total of two setups and 40 machine hours Required: 1. Calculate the activity rates (round to two decimal places) (4 marks) 2. Calculate the product margin on the customer order. (8 marks) 3 Calculate the customer margin. (2 marks)