Unit-Based Versus Activity-Based Costing Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model and a deluxe model. The deluxe model has a wider and sturdier base and a variety of electronic gadgets to help the exerciser monitor heartbeat calories burned, distance traveled, etc. At the beginning of the year, the following data were prepared for this plant: Standard Model Deluxe Model Expected quantity 30,000 Selling price $370 $700 Prime costs $4,5 million $5,25 million Machine hours 37.500 37,500 15,000 Direct labor hours 75,000 25,000 13,500 31,500 3,000 4,500 15,000 45,000 Engineering support (hours) Receiving Corders processed) Materials handling (number of moves) Purchasing (number of requisitions) Maintenance (hours used) Paying suppliers (invoices processed) Setting up batches (number of setups) 750 1,500 6,000 24,000 3,750 9,750 50 540 Foll Additionally, the following overhead activity costs are reported: Maintenance $600,000 900,000 1,200,000 750,000 Engineering support Materials handling Setups Purchasing Receiving Paying suppliers 450,000 300,000 300,000 $4,500,000 Required: 1. Calculate the cost per unit for each product using direct labor hours to assion all overhead costs. Unit cost Standard Deluxe 75 150 2. Calculate activity rates. Activity Rates Maintenance 20 per hour used Engineering support 20 per hour Materials handling 20 per move Setups 1,250 per setup Purchasing 200 per requisition Receiving 40 per order Paying suppliers 40 per invoice Determine the cost per unit. If required, round your final answers to the nearest cent. $ Overhead cost Standard Der unit Deluxe per unit Compare these costs with those calculated using the unit based method. Which cost is the most accurate