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1. Sunny Inc. manufactures two sizes of car doors: large and small. The company uses activity-based costing to allocate manufacturing overhead and classifies overhead into three activity pools: setup ($9,000), machine processing ($29,400), and product inspection ($6,600). Cost drivers for each activity are setup hours, machine hours, and inspection hours, respectively. According to estimated customer demand, Sunny produces 1,000 large doors and 300 small doors this year. Other relevant data for the two products is given in the following table: Large 2.0 pounds 3.0 hours Small 5.0 pounds 2.0 hours 20 15 Direct materials per unit ($3 per pound) Direct labor per unit ($12 per hour) Number of units per batch Setup time per batch Machine hours per unit Inspection time per batch Selling price per unit Sales volume (units) 1.2 hours 4.0 hours 3.0 hours $76 800 1.5 hours 3.0 hours 9.0 hours $74 200 Required: (1) Compute the overhead application rates that would be used for setup, machine processing, and product inspection. (2) Compute the total manufacturing costs per unit of large and small door. (3) If the company uses traditional costing and allocates overhead solely on the basis of direct labor hours, determine the amount of manufacturing overhead per unit of each product