Prices Dairy packages single-sized servings of whole milk and low-fat milk. The activities required to package whole milk are fewer and less complex than for the low fat mile. In March, Prices produced 150,000 units of whole milk and 200,000 units of low-fat milk. The direct costs of producing the two products are as follows

1. Compute the three activity rates that would be used in an activity-based system. How much total overhead cost will be assigned to each product under an ABC system?
2. Compute the total cost to manufacture one unit of each product if activity-based costing is used. Round your final answer to two decimal places

Oveihead is currently assigned to the two products based on machine hours. The following information is provided regarding overhead costs