Problem 5-39 Resource and Activity-Based Cost Drivers (LO 5-1, 5-3] EyeGuard Equipment Inc. (EEI) manufactures protective eyewear for use in commercial and home applications. The product is also used by hunters, home woodworking hobbyists, and in other applications. The firm has two main product lines-the highest-quality product is called Safe-T, and a low-cost, value version is called Safe-V. Information on the factory conversion costs for EEI is as follows: Salaries Supplies Factory expense Factory Costs $ 842,000 142,000 542,000 $ 1,526,000 EEl uses ABC to determine the unit costs of its products. The firm uses resource consumption cost drivers based on rough estimates of the amount that each activity consumes, as shown below. EEl has four activities: job setup, assembly, inspecting and finishing, and packaging Setup 10% 15 Salaries Supplies Factory expense Packaging 15% Inspecting and Finishing 25% 30 30 Assembly 50% 55 70 Total 100% 100 100 The activity cost drivers for the two products are summarized below. Activities Setup Assembly Inspect and finishing Packaging Activity Driver Batch Units Finishing hours Packing hours Batches Units Finishing hours, per unit Packaging hours, per unit Materials per unit Safe-V 170 52,000 0.40 0.30 $ 3.00 Safe-T 520 64,000 0.40 0.20 $ 7 Required: 1. Determine the amount of the cost pool for each of the four activities. 2. Determine the activity-driver rates for assigning factory costs to the two products. 3. Determine the activity-based unit cost for each of the products. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the amount of the cost pool for each of the four activities. Factory Costs Salaries Supplies Factory expense $ 842,000 $ $ 142,000 $ $ 542,000 $ 1,526,000 $ Setup Inspecting & Assembly Finishing Packaging 84,200 $ 421,000 $ 210,500 $ 126,300 21,300 $ 78,100 $ 42,600 0 0 $ 379,400 $ 162,600 0 105,500 878,500 $ 415,700 $ 126,300 (Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the activity-driver rates for assigning factory costs to the two products. (Round your answers to 2 decimal places.) Activity-Driver Rates $ 152.90 $ 7.57 Setup Assembly Inspect and Finish Packaging $ 8.96 $ 4.45