Material Procurement $-$ Diven by purchase orders

Machining $=-$ Diven by mackine hours used in production

Assembly $-$ Deven by drect labor hours

Ouality Centrol $-$ Daven by number of units pesdaced

Activity Cost Pools $8$ Cost Drivers

$\backslash$table$[[$Activily$,$Total Costs,Cont Prier$],[$Material Procurement,$$50,000,\backslash$table$[[$Purchase$],[$Orders$]]],[$Machining$,$$$80,000,\backslash$table$[[$Machine Hours$]]],[$Assembly$,$$$90,000,\backslash$table$[[$Divect Labor$],[$Hours$]]],[$Qually Control,$$60,000,$Unts Proouced$],[$Totar OHI Cost,$$280,000,]]$

Cost and Activity Data for Each Product

$\backslash$table$[[,$Basic,Premien,,Protessional$],[$Direct materials,$$16,000,$$$24,500,$$$25,000,],[$Direct labor,$$30,000,$$$45,000,$$$42,000,],[$Units completed,$800,700,500,],[$Direct labor$-$hours,$2\mathrm{.}000,1\mathrm{.}800,1200,],[$Machine Hours,$1500,1200,1300,],[$Purchase Orders,$400,350,250,]]$

Questions:

A$.$ Calculate the activily rate $($cost per activity$)$ for each of the three acivies

B$.$ Using the activity rates, compute the total activty cors allocaled lo each product $($Basic$,$ Premium, Professional$)$

C$.$ Based on the allocated costs, what is the total production cost for each produch?

D$.$ If the company wants to eam a $20\%$ proftt margin on each proouct, what should be the selling price per unit for Basic, Premium, Professionar? $($Pint$,$ is ism just taking the cost and multiglying is by $120\%,$ what you are trying to get is where lgross proft per unt $/$ price per unit $=20\%11$