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P7.36 Activity-based costing calculations Refer to the data given in Problem P7.35. The company has implemented an activity-based costing system for its manufacturing overhead costs, with the activity cost pools and activity driver data below. LO7.5 7.6 Activity drivers Activity cost Total Basic product line $ 200 000 120 000 Activity Machine setup Material receiving Inspection Machinery-related Engineering Total overhead * MH = machine hours. EH = engineering hours. 200 setups 80 000 kilograms 1 600 inspections 60 000 MH* 7 000 EH 50 setups 30 000 kilograms 700 inspections 20 000 MH 160 000 Advanced product line 150 setups 50 000 kilograms 900 inspections 40 000 MH 840 000 280 000 3 000 EH 4 000 EH $1 600 000 Constellation Peripherals plans to produce 1000 units of each model MFP. Required: 1. For each activity, calculate the cost per unit of activity driver (e.g. the cost per setup). 2. Determine the total overhead to be assigned to each product line under activity-based costing. 3. Calculate the overhead assigned per unit of each type of MFP under activity-based costing. 4. Prepare a table comparing the total product cost assigned to each type of MFP using a plantwide overhead rate, departmental overhead rates and activity-based costing. (This requirement relies on the solution to Problem P7.35.)