Cornerstone Exercise 4.5 (Algorithmic) Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 90,000 270,000 ------ Prime costs $7,740,000 $31,320,000 $39,060,000 Machine hours 90,000 450,000 540,000 Engineering hours 300 2,700 3,000 Receiving orders 500 1,500 2,000 Inspection hours 600 1,200 1,800 Overhead costs: Machining $5,400,000 Engineering 1,470,000 Receiving 560,000 Inspecting products 180,000 Required: 1. Calculate the four activity rates. Machining rate $ per machine hour Engineering rate $ per hour Receiving rate $ per order Inspecting rate $ per hour 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. Unit cost Basic $ per unit Advanced $ per unit Calculate the overhead cost per unit. Round your answers to the nearest cent. Overhead Cost Basic $ per unit Advanced $ per unit 3. What if consumption ratios instead of activity rates were used to assigned costs? Show the cost assignment for the inspection activity. Cost assignment Basic $ Advanced $