Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities$$production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities:

Activity Activity Cost Activity Base

Production setup $ $75,000$ Number of setups

Procurement $138,000$ Number of purchase orders $($PO$)$

Quality control $144,000$ Number of inspections

Materials management $210,000$ Number of components

Total $$567,000$

The activity$-$base usage quantities for each product are as follows:

Setups Purchase

Orders Inspections Components Unit Volume

Custom $3001,1002,2005502,000$

Standard $2001002004502,000$

Total $5001,2002,4001,0004,000$

a$.$ Determine an activity rate for each activity.

Activity Rates Production Setup Procurement Quality Control Materials Management

Activity cost $fill in the blank $1$ $fill in the blank $2$ $fill in the blank $3$ $fill in the blank $4$

$-$: Activity base fill in the blank $5$ fill in the blank $6$ fill in the blank $7$ fill in the blank $8$

Activity rate $fill in the blank $9/$setup $fill in the blank $10/$PO $fill in the blank $11/$inspection $fill in the blank $12/$component

b$.$ Assign activity costs to each product and determine the unit activity cost, using the activity rates from part $($a$).$ Round unit costs to the nearest cent.

Custom Standard

Setups Total $fill in the blank $13$ $fill in the blank $14$

Purchase Orders Total fill in the blank $15$ fill in the blank $16$

Inspections Total fill in the blank $17$ fill in the blank $18$

Components Total fill in the blank $19$ fill in the blank $20$

Total product cost $fill in the blank $21$ $fill in the blank $22$

Unit volume fill in the blank $23$ fill in the blank $24$

Unit cost $fill in the blank $25$ $fill in the blank $26$

c$.$ Assume that each product required one direct labor hour per unit. Determine the per$-$unit cost if factory overhead is allocated on the basis of direct labor hours. Round your answer to the nearest cent.

$fill in the blank $27$per unit

d$.$ The custom product will consume

materials management activities than will the standard product.

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