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Please help Elliot-Jones manufactures two large-screen television models. The 65-inch flat-panel LED model has been in production since 2012 and sells for $900. The company

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Elliot-Jones manufactures two large-screen television models. The 65-inch flat-panel LED model has been in production since 2012 and sells for $900. The company introduced a 55-inch 4K ultra HD in 2016; it sells for $1,200. The company's income statement for the current year follows. Based on these results, management has decided to concentrate the company's marketing efforts on the 4K ultra HD model and begin to phase out the LED model.

Elliot-Jones Income Statement For the Year Ended December 31
65" LED 55" 4K Ultra HD Total
Sales Revenue $ 18,000,000 $ 6,000,000 $ 24,000,000
Cost of goods sold 11,800,000 4,015,500 15,815,500
Gross profit 6,200,000 1,984,500 8,184,500
Selling and administrative expenses 5,300,000 978,000 6,278,000
Operating income $ 900,000 $ 1,006,500 $ 1,906,500
Units produced and sold 20,000 5,000
Operating income per unit sold $ 45.00 $ 201.30

The unit costs for the two television models are as follows:

65" LED 55" 4K Ultra HD
Direct materials $352.00 $656.00
Direct labor 18.00 42.00
Manufacturing overhead 220.00 105.10
Total unit cost $590.00 $803.10

Mark Renn, Elliot-Jones' controller, just attended a seminar on activity-based costing and believes the company should implement such a system. He has gathered the following annual information to explore the possibility.

Number of Events
Activity Cost Pool Cost Driver Traceable Costs 65" LED 55" 4K Ultra HD Total
Soldering number of solder joints $942,000 1,185,000 385,000 1,570,000
Shipping number of shipments 860,000 16,000 4,000 20,000
Quality control inspecting number of inspections 1,248,000 56,250 21,750 78,000
Purchasing number of orders 1,050,000 65,000 110,000 175,000
Machining number of machine hours 70,400 150,000 26,000 176,000
Machine setups number of setups 750,000 11,000 14,000 25,000
Total traceable costs $4,920,400

(a)

Calculate the activity rate for each activity cost pool. (Round answers to 2 decimal places, e.g. 15.25.)

Cost Pool Activity Rate
Soldering $enter the activity rate per joint in dollars / joint
Shipping $enter the activity rate per shipment in dollars / shipment
Quality control $enter the activity rate per inspection in dollars / inspection
Purchasing $enter the activity rate per purchase order in dollars / purchase order
Machining $enter the activity rate per machine hour in dollars / machine hour
Setups $enter the activity rate per setup in dollars / setup

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