Exercise 17-12 Activity-based costing rates and allocations LO P3 A company has two products: standard and deluxe. The company expects to produce It uses activity-based costing and has prepared the following analysis showing b 36,375 standard units and 62,240 deluxe units udgeted cost and cost driver activity for each of its three activity cost pools Budgeted Activity of Cost Driver Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost $93, 000 $92,000 87,000 Standard 2,500 4, 500 3,000 Deluxe 5, 250 5, 500 2, 800 Required: 1 Compute overhead rates for each of the three activities 2 What is the expected overhead cost per unit for the standard units? 3 What is the expected overhead cost per unit for the deluxe units? 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? (Round activity rate and cost per unit answers to 2 decimal places.) Activity Expected Costs Activity Driver pected 93,000 92,000 87,000 Standard Activity Activity Driver Activity Rate Allocated Cost 2 3 Deluxe Activity Activity Driver Activity Rate Allocated Cost 92,000 87,000 Standard Activity Activity Driver Activity Rate Allocated Cost Deluxe Activity Activity Driver Activity Rate Allocated Cost