Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activitiesproduction 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	$ 84,500		Number of setups
Procurement	133,000		Number of purchase orders (PO)
Quality control	238,000		Number of inspections
Materials management	205,000		Number of components
Total	$660,500

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

	Setups		Purchase Orders		Inspections		Components		Unit Volume
Custom	450		1,150		2,300		550		2,000
Standard	200		250		500		450		2,000
Total	650		1,400		2,800		1,000		4,000

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 27per unit