Q2. E-Scoot plans to manufacture electric scooters for urban commuters. The company expects to have two models, the Commuter and the Range models. The company will use activity-based costing to apply its estimated $145,000 of overhead costs to its products. Information about its overhead follows:

Activity (Cost Driver)	Estimated MOH	Expected Activity
		Total	Commuter	Range
Assembly (Labour Hours)	$20,000	10,000	6,000	4,000
Quality control (Inspection Hours)	35,000	2,000	600	1,400
Parts Admin (Number of Parts)	90,000	100	40	60
	$145,000
The following cost data is known:
	Commuter	Range
Direct Materials	$600	$900
Direct Labour	250	400
Number of units produced	250 units	150 units

The company has not yet determined its planned selling price, but knows that the average price for competitors of the Commuter model is $1,200. For the Range model, competitors are priced at $1,700 on average.

Required:

a.) Compute the activity rates for each activity.

b.) Determine the expected unit cost of each product.