Teldar Manufacturing Company is a diversified manufacturer that manufactures three products (M5, Z4, and I8) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: 1 Activity Activity Cost Pool 2 Production $251,598.00 3 Setup 92,035.00 4 Material handling 10,736.00 5 Inspection 49,833.00 6 Product engineering 136,230.00 7 Total $540,432.00 The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Number of setups Material handling Number of parts Inspection Number of inspection hours Product engineering Number of engineering hours The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Machine Number of Number of Number of Number of Hours Setups Parts Inspection Hours Engineering Hours Units M5 970 63 84 489 123 1,354 Z4 802 123 138 272 170 1,044 I8 435 209 266 256 185 452 Total 2,207 395 488 1,017 478 2,850 Each product requires 0.72 machine hour per unit. Required: Complete the Activity Tables for M5, Z4 and I8. 1. Determine the activity rate for each activity.* 2. Use the activity rates in (1) to determine the total and per-unit activity costs associated with all three products.* * If required, round all per-unit amounts to the nearest cent.