Please verify the correct answers below and complete the ending question.

Options for drop down activity-based method / unit-based method

Unit-Based Versus Activity-Based Costing Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model and a deluxe model. The deluxe model has a wider and sturdier base and a variety of electronic gadgets to help the exerciser monitor heartbeat, calories burned, distance traveled, etc. At the beginning of the year, the following data were prepared for this plant: Standard Model Deluxe Model Expected quantity 30,000 15,000 Selling price $370 $700 Prime costs $4.5 million $5.25 million Machine hours 37,500 37,500 Direct labor hours 75,000 75,000 Engineering support (hours) 13,500 31,500 Receiving (orders processed) 3,000 4,500 Materials handling (number of moves) 15,000 45,000 Purchasing number of requisitions) 750 1,500 Maintenance (hours used) 6,000 24,000 Paying suppliers (invoices processed) 3,750 3,750 Setting up batches (number of setups) 540 Additionally, the following overhead activity costs are reported: Maintenance $600,000 900,000 Engineering support Materials handling 1,200,000 Setups 750,000 Purchasing 450,000 Receiving 300,000 Paying suppliers 300,000 $4,500,000 Required: 1. Calculate the cost per unit for each product using direct labor hours to assign all overhead costs. Standard Unit cost $ 225 $ 500 Deluxe 2. Calculate activity rates. Activity Rates Maintenance Engineering support per hour used per hour $ Materials handling per move Setups $ 20 20 20 1,250 200 40 40 Purchasing per setup per requisition per order per invoice Receiving $ Paying suppliers Determine the cost per unit. If required, round your final answers to the nearest cent. Overhead cost Standard $ per unit Deluxe per unit Compare these costs with those calculated using the unit-based method. Which cost is the most accurate