Palmer Co$.$ produces two types of volleyballs: Volleylite and Official Game.

Both products pass through two producing departments. The Official Game production is much

more labour$-$intensive than the Volleylite. The Volleylite is also more popular. The following

data have been gathered for the two products:

Product Data

Official Game Volleylite

Units produced per year $20,000200,000$

Machine hours $10,00040,000$

Packing orders $30,00030,000$

Palmer Co$.$ has decided to used activity$-$based costing and has developed two types of activities,

machine related $($based on machine hours$),$ and other overhead $($based on packing orders$).$

Machine$-$related costs equal $$160,000.$ Other overhead costs equal $$240,000.$

Required:

$1.$ Calculate the activity rate for machine$-$related costs based on machine hours.

$2.$ Calculate the activity rate for other overhead costs based on packing orders.

$3.$ Using the two activity rates, calculate the overhead cost per unit for Official Game.

$4.$ Using the two activity rates, calculate the overhead cost per unit for Volleylite.