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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.

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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 $ 44,000 Number of setups Procurement 13,500 Number of purchase orders (PO) Quality control 97,500 Number of inspections Materials management 84,000 Number of components Total $239,000 The activity-base usage quantities for each product are as follows: Purchase Orders Inspections Components Setups Unit Volume worlds 500 Custom 290 760 1,200 300 200 2,000 2,000 4,000 Standard 110 140 900 700 1,500 400 Total Activity Rates Production Setup Procurement Quality Control Materials Management Activity cost + Activity base Activity rate /setup /PO /inspection /component b. Assign activity costs to each product and determine the unit activity cost, using the activity rates from part (a). Round unit cost to two decimal places. Custom Standard $ Setups Total Purchase Orders Total Inspections Total m Components Total Total product cost Unit volume Unit cost the basis of direct places. Custom Standard Setups Total Purchase Orders Total Inspections Total LIBRIO Components Total Total product cost

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