Problem 9-64 (Static) Activity-Based Costing and Predetermined Overhead Rates (LO 9-3, 5, 6) The study team decides to look more closely at the assembly activity and determines that it can be broken down into two activities: production and engineering. Production covers the costs of ongoing manufacturing while engineering includes those activities dealing with design changes, equipment calibration, and so on. The costs attributed to production are $1,657,500, and the costs attributed to engineering are $552,500. After discussion with plant engineers, the team decides that although machine-hours are an appropriate cost driver for production, the best cost driver for engineering is setups because most of the work arises from changes in the way the product is run. Required: a-1. Compute the totals of the cost driver rates shown below. a-2. What unit product costs will be reported for the two products if the revised ABC system is used? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Compute the totals of the cost driver rates shown below. Note: Round "Packaging and shipping" answer to 2 decimal places. Material inspection Production Engineering Equipment setup Packaging and shipping % of material dollars per hour per setup per setup per unit