Sand Company production managers noted that the SDP product is much harder to produce than the BP product. The SDP product is highly automated and requires product engineers to spend many hours setting the tight specifications and machine tolerances. BP is a standard product which is assembled from purchased parts. The Sand Company Controller felt that the plantwide overhead rate gave misleading cost information and wanted to try ABC. The following information on activities prepared and drivers was developed: Sand Company BP SDP Direct labor hours Units produced Purchase orders 90,000 45,000 500 5,000 600 $1,485,000 10,000 5,000 300 15,000 4,400 $190,000 Machine hours Engineering hours Prime cost Sand Company Overhead Costs Purchasing Machine maintenance and operation $30,000 150,000 75,000 Engineering All other 105,000 Total $360,000 1. Calculate activity rates for the following (If required, round your answers to two decimal places.): Purchasing $ per purchase order Machine maintenance and operation $ per machine hour. Engineering $ per engineering hour. All other overhead $ per direct labor hour. 2. Using the activity rates and drivers from Requirement #1, fill in the applied overhead amounts and total product and unit costs for BP and SDP. (If required, round rates and per unit costs to the nearest cent and round dollar figures to the nearest dollar.) Sand Company BP SDP Total prime cost $1,485,000 $190,000 Applied overhead: Purchasing Machine maintenance and operation Engineering All other Total product cost number of units 45,000 + 5,000 Unit cost