No Spacing 5-1A -Activity Based Costing E-Scoot plans to manufacture electric scooters for urban commuters. The company expects to have two models, the "Commuter" and the "Range" models. The company will use activity- based costing to apply its estimated $145,000 of overhead costs to its products. Information about its overhead follows: Activity (Cost Driver) Estimated MOH Expected Activity Total Commuter Range Assembly (Labour Hours) $20,000 10.000 6.000 4.000 Quality control (Inspection Hours) 35,000 2,000 600 1,400 Parts Admin (Number of Parts) 90.000 100 40 60 $145.000 The following cost data is known: Commuter Range Direct Materials $600 $900 Direct Labour 250 400 Number of units produced 250 units 150 units The company has not yet determinea its planned selling price, but knows that the average price for competitors of the Commuter model is $1,200. For the Range model, competitors are priced at $1,700 on average. Required: a.) Compute the activity rates for each activity. b.) Determine the expected unit cost of each product. C.) If E-Scoot prices its products in line with competitors, what will the margins be on each product? The largest competitors have gross profit margins of 23%, how does E-Scoot compare