Required 1: over head cost per unit for Product 1:Product 2:

A manufacturer reports the following for its two products: Product 1 and Product 2. Product 1 requires 2 direct labor hours per unit and Product 2 requires 3 direct labor hours per unit. The company budgets 5,200 direct labor hours to be used, based on expected production of 2,000 units of Product 1 and 400 units of Product 2. Activity Budgeted Cost (Activity Driver) Setup $ 129, 360 (22 machine setups) Handling parts 54, 080 (16,000 parts) Inspection 89, 500 (250 inspections) Total budgeted overhead $ 272, 940 Actual Activity Driver Usage Product 1 Product 2 Setups 10 12 Parts 10, 000 6,000 Inspections 40 210 Enter answers in the tabs below. Required 1 Required 2 Use activity-based costing to a) compute overhead activity rates, and b) allocate overhead cost to each product and compute overhead cost per unit for each product. Note: Do not round intermediate calculations. Round the final answers to 2 decimals. a. Compute overhead activity rates Activity Activity Rate Setup per setup Handling parts per part Inspection per inspection b. Allocate overhead to each product and compute overhead cost per unit for each product Allocated Cost Activity Product 1 Product 2 Setup Handling parts Inspection Total allocated cost $ o S Units produced Overhead cost per unit