Problem Two - Activity-Based Costing Systems (20 point value) Raymond Company produces a variety of bicycles. One of its plants produces two bicycles: a mountain model and a racing model. At the beginning of the year, the following data were prepared for this plant: Mountain 220,000 $1,200 $ 400 Racing 125,000 $1,000 $ 450 Quantity Selling Price Unit Prime Cost In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Machining Engineering Packing Activity Driver Machine hours Engineering hours Packing orders Activity Cost $20,000,000 $8,000,000 $3,500,000 Mountain 250,000 75,000 50,000 Racing 250,000 50,000 125,000 Raymond Company uses activity-based costing to calculate product costs. Required: Calculate the per unit product cost for a mountain bike. Calculate the per unit product cost for a racing bike. Assume Armstrong Company adds 35% to the cost of a mountain bike and 40% to the cost of a racing bike obtain the selling prices. Calculate the selling prices for a mountain bike and a racing bike . . C