Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity-Based Costing Lacy, Inc., produces a subassembly used in the production of hydraulic cynders The subassemblies are produced in three departments: Plate Cutting Rod Cutting, and Welding. Materials are added at the beginning of the process. Overhead is applied using the following drivers and activity rates: Actual Usage Driver Direct labor cost Inspection hours Purchase orders Other data for the Plate Cutting Department are as follows Beginning work in process Units started Rate 140% of direct labor $40 per hour $1,000 per order (by Plate Cutting) $732,000 7,450 hours 800 orders 750,000 Direct materials cost $6,750,000 Units, ending work in process (100% materials; 64% conversion) 50,000 Required: 205 PM 205 PM 2. a. Direct materialsper unit per uni 205 PM per unt a. Direct b. Conversion costs per unit Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity-Based Costing Lacy, Inc., produces a subassembly used in the production of hydraulic cynders The subassemblies are produced in three departments: Plate Cutting Rod Cutting, and Welding. Materials are added at the beginning of the process. Overhead is applied using the following drivers and activity rates: Actual Usage Driver Direct labor cost Inspection hours Purchase orders Other data for the Plate Cutting Department are as follows Beginning work in process Units started Rate 140% of direct labor $40 per hour $1,000 per order (by Plate Cutting) $732,000 7,450 hours 800 orders 750,000 Direct materials cost $6,750,000 Units, ending work in process (100% materials; 64% conversion) 50,000 Required: 205 PM 205 PM 2. a. Direct materialsper unit per uni 205 PM per unt a. Direct b. Conversion costs per unit