The cost accountant of ABC Manufacturing attended a workshop on activity ABC Manufacturing attended a workshop on activity-based costing and was impressed by the results. After consulting with the production Alter consulting with the production personnel, he prepared the following information on cost drivers and the estimated volume for each driver. Cost Driver Cost Driver Volume Ace Best Champ Total Activity Machining: Setup Machining Assembly: Assembly Inspection Number of setups Machine hours 125 2,500 75 1,500 50 2,000 250 6,000 Direct labor hours Number of inspections 25,000 50 15,000 25 5,000 25 45,000 100 The cost accountant also determined how much overhead costs were incurred in each of the four activities as follows: Overhead Costs $ 150,000 750,000 900.000 Activity Machining: Setup Machining Total Machining department overhead Assembly: Assembly Inspection Total Assembly department overhead Total overhead costs 360,000 90,000 450,000 $1,350,000 Required: 1. Determine the cost driver rate for each activity cost pool. 2. Use the activity-based costing method to determine the unit cost for each product. 3. Summarize and comment the results