# Question & Answer: A company has two products: standard and deluxe. The company expects to produce 36,375 standard units and 62,240 deluxe units…..

A company has two products: standard and deluxe. The company expects to produce 36,375 standard units and 62,240 deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools Budgeted Activity of Cost Driver Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Cost \$93,000 \$92,000 \$87,000 Standard Deluxe 2,500 5,250 4,500 5,500 3,000 2,800 Required 1. Compute overhead rates for each of the three activities 2. What is the expected overhead cost per unit for the standard units? 3. What is the expected overhead cost per unit for the deluxe units? Round activity rate and cost per unit answers to 2 decimal places.) Expected Activity Activity Rate Driver Activitxpected osts 1 S 93,000 92,000 87,000 2 Standard Activibriver ctivity ActivityAllocated RateCost 2 Deluxe lActivityActivity Allocated Activi river RateCost 2