The total factory overhead for Diva-nation is budgeted for the year at $180,000, divided into four activities: cutting, $18,000; sewing, $36,000; setup, $96,000; and inspection, $30,000. Diva-nation manufactures two types of men's pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows:

Each product is budgeted for 20,000 units of production for the year. Determine (a) the activity rates for each activity and (b) the activity-based factory overhead per unit for each product.

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Cutting Sewing Setup 1,400 setups 1,000 2,400 setups Inspection 3,000 inspections 2,000 5,000 inspections Jeans Khakis 800 dlh 1,200 dlh 1,200 800 2,000 dlh 2,000 dlh