Orleans Company has identified the following overhead activities costs and activity drivers for the coming year:

Activity Expected cost Activity Driver Activity Capacity

$$Setting up $$120,000$ Number of setups $600$

$$Inspecting $$90,000$ Inspection hours $9,000$

$$Grinding $$180,000$ Machine hours $36,000$

$$Receiving $?$ Number of parts $100,000$

The company produces several different subassemblies used by other manufacturers. Information on separate batches for two of these subassemblies a re as follows:

$$ Batch A Batch B

$$Direct Materials $$1,700$ $$1,900$

$$Direct Labour $$1,200$ $$1,200$

$$Units Completed $200100$

$$Number of setups $22$

$$Inspection hours $84$

$$Machine hours $4060$

$$Parts used $4080$

The company's normal activity is $20,000$direct labour hours. Each batch uses

$100$hours of direct labour. Upon investigation, you discover that Receiving employs a worker, who spends $75\%$of her time on the receiving activity and

$25\%$of her time on inspecting products. Her salary is $$80,000.$Receiving also uses a forklift, at a cost of $$12,000$per year for depreciation and fuel. The forklift is used only in receiving.

$1.$What is the unit cost for Batch A$,$ using activity rates?

$2.$ If direct labour hours are used to assign total overhead costs, what is the rate per Direct Labour Hour?

$3.$ What is the unit cost for Batch A$,$ using Direct Labour hours to assign overhead?