Randy Company produces candy sticks (hooked and straight). Both products pass through two producing departments. The hooked sticks' production is much more labor-intensive than the straight sticks. The straight stick is also more popular. The following data have been gathered for the two products:

Product Data

Hooked Straight

Units produced per year 200,000 2,000,000

Machine hours 10,000 40,000

Packing orders 30,000 30,000

Randy has decided to use activity-based costing and has identified two types of costs, machine related (based on machine hours) and other overhead (based on packing orders). Machine-related costs equal $160,000. Other overhead costs equal $240,000.

Required:

If required, round your answers to three decimal places. When required, use rounded amounts in subsequent computations.

A.Calculate the activity rate for machine-related costs based on machine hours.

per machine hour

B.Calculate the activity rate for other overhead costs based on packing orders.

per packing order

C.Using the two activity rates, calculate the overhead cost per unit for hooked sticks.

D.Using the two activity rates, calculate the overhead cost per unit for straight sticks.