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A company has two products: standard and deluxe. The company expects to produce 36,375 standard units and 62,240 deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Activity Cost Pool Activity 1 Activity 2 Activity 3 Activity Expected Costs 1 $ 2 3 Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Standard Activity 1 2 3 Deluxe Activity 1 2 3 93,000 92,000 87,000 Activity Driver Budgeted Cost $93,000 $92,000 $87,000 Activity Driver Expected Activity Driver Activity Rate Budgeted Activity of Cost Driver Activity Rate Standard 2,500 4,500 3,000 Activity Rate Allocated Cost Deluxe 5,250 5,500 2,800 Allocated Cost 0 Exercise 04-14 Activity-based costing and overhead cost allocation LO P3 The following is taken from Ronda Co.'s internal records of its factory with two production departments. The cost driver for indirect abor and supplies is direct labor costs, and the cost driver for the remaining overhead items is number of hours of machine use. Department 1 Department 2 Totals Factory overhead costs Rent and utilities. Indirect labor General office expense Depreciation-Equipment Supplies Total factory overhead Direct Labor Costs to be allocated Indirect labor and supplies Rent, utilities, general office and depreciation $18,800 13,200 $32,000 Machine Use Hours 2,000 1,200 3,200 Compute the total amount of overhead cost allocated to Department 1 using activity-based costing. (Round activity rate answers to 2 decimal places.) Estimated Cost $12,200 5,400 4,000 3,000 2,600 $27,200 Estimated Cost driver 0 Rat Cost driver quantity incurred OH Allocated