Exercise $17-15($Static$)$ Computing activity rates, overhead allocation, and cost per unit LO P$3$

Lucern Company reports the following for its overhead cost for the year.

Activity Budgeted Cost Budgeted Activity Usage

Engineering support $ $24,50070$ design changes

Electricity $34,0003,400$ machine hours

Setup $52,500350$ setups

Compute the activity rate for each activity using activity$-$based costing.

The company$$s Pro model used these activities to produce $1,200$ units during the year: $2$ design changes, $140$ machine hours, and $12$ setups. Allocate overhead cost to the Pro model and compute its overhead cost per unit using activity$-$based costing.