Samia Manufacturing has five activity cost pools and two products (a basic product and a deluxe product). Information is presented below:

Requirements 1. Compute the predetermined overhead allocation rates for each cost pool.
2. Compute the overhead cost per unit for each product. Production is 700,000 units of Basic and 200,000 units of Deluxe.

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Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Allocation Base Orders Setups Machine hours Parts Inspections Cost Drivers by Product Basic Deluxe Est. Overhead $ 120,000 $ 297,000 1,000,000 1,400,000 300,000 600 500 400 400 150,000 100,000 1,200,000 800,000 550 450