Activity$-$Based Costing

Quality Cuts Inc. has total estimated factory overhead for the year of $$204,000,$ divided into four activities: cutting, $$81,000$; sewing, $$25,500$; setup, $$60,000$; and inspection, $$37,500.$ Quality Cuts manufactures two types of men's pants; jeans and khakis. The activity$-$base usage quantities for each product by each activity are as follows:

$\backslash$table$[[,$Cutting,Sewing,Setup,Inspection$],[$Jeans$,500$ dlh$,1,000dlh,250$ setups,$100$ inspections$],[$Khakis$,\frac{1,000}{1,500}dlh,\frac{500}{1,500}dlh,\frac{750}{1,000}$ setups,$\frac{400}{500}$ inspections$]]$

Each product is budgeted for $10,000$ units of production for the year.

a$.$ Determine the activity rates for each activity.

Cutting

$ $q,$ per dlh

Sewing

$ $$ per dlh

Setup

$ $$ per setup

Inspection

$ $$ per inspection

b$.$ Determine the factory overhead cost per unit for each product, using activity$-$based costing. Round your answers to two decimal places. $$

Jeans

Khakis