Sunland-Jones manufactures two large-screen television models. The 65-inch flat-panel LED model has been in production since 2012 and sells for $1,000. The company introduced a 55-inch 4K Ultra HD in 2016; it sells for $1,300. The company's income statement for the current year follows. Based on these results, management has decided to concentrate the company's marketing efforts on the 4K ultra HD model and begin to phase out the LED model. Sunland-Jones Income Statement For the Year Ended December 31 65" LED 55" 4K Ultra HD Sales Revenue $ 20,000,000 $ 5,200,000 Cost of goods sold 11,800,000 3,212,400 Gross profit 8,200,000 1,987,600 Selling and administrative expenses 5,300,000 978,000 Operating income $ 2,900,000 $ 1,009,600 Units produced and sold 20,000 4,000 Operating income per unit sold $ 145.00 $ 252.40 Total $ 25,200,000 15,012,400 10,187,600 6,278,000 $ 3,909,600 The unit costs for the two television models are as follows: Direct materials Direct labor Manufacturing overhead Total unit cost 65" LED $352.00 18.00 220.00 $590.00 55" 4K Ultra HD $656.00 42.00 105.10 $803.10 Mark Renn, Sunland-Jones' controller, just attended a seminar on activity-based costing and believes the company should implement such a system. He has gathered the following annual information to explore the possibility. Activity Cost Pool Soldering Shipping Quality control inspecting Purchasing Machining Machine setups Total traceable costs Cost Driver number of solder joints number of shipments number of inspections number of orders number of machine hours number of setups Traceable Costs $942,000 900,000 1,170,000 1,225,000 70,400 625,000 $4,932,400 65" LED 1,185,000 16,000 52,000 65,000 150,000 11,000 55" 4K Ultra HD 385,000 4,000 26,000 110,000 26,000 14,000 Total 1,570,000 20,000 78,000 175,000 176,000 25,000 (a) Your Answer Correct Answer Your answer is correct. Calculate the activity rate for each activity cost pool. (Round answers to 2 decimal places, e.g. 15.25.) Cost Pool Soldering Activity Rate 0.60 / joint $ Shipping $ $ 45.00 / shipment Quality control $ 15.00 / inspection Purchasing $ 7.00 /purchase order Machining 0.40 /machine hour $ $ Setups 25.00 / setup (b) Allocate overhead costs to each product using activity-based costing. (Round per unit answers to 2 decimal places, e.g. 15.25.) Cost Pool 65" LED 55" 4K Ultra HD Soldering $ $ $ Shipping Quality control Purchasing Machining Setups $ $ $ Units produced OH per unit $ $ e Textbook and Media Save for Later Attempts: unlimited Submit Answer (c) The parts of this question must be completed in order. This part will be available when you complete the part above