Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for the year for the given activity cost pools: Fabrication Department Finishing Department Cost Driver $40,000 Machine hours 15,000 Material moves 5,000 Machine setups 25,000 Inspection hours $85,000 Maintenance Materials handling Machine setups Inspections Machine hours Material moves Machine setups Inspection hours The following activity predictions were also made for the year: Fabrication Department Finishing Department Direct materials cost Direct labor cost Machine hours (Fabrication) Machine hours (Finishing) Materials moves Machine setups Inspection hours It is assumed that the cost per unit of activity for a given activity does not vary between departments. Slack's president, Charles Slack, is trying to evaluate the company's product mix strategy regardin two of its five product models, ZX300 and SL500. The company has been using a company-wide overhead rate based on machine hours but is considering switching to either department rates or activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models: Direct materials Direct labor $50,000 30,000 70,000 Manufacturing overhead $150,000 Maintenance activity Materials handling activity Machine setups activity Inspections activity Total cost per batch Number of units per batch Cost per unit 10,000 3,000 700 ZX300 SL500 $16,000 $22.000 $5,000 $4,000 500 700 200 100 30 50 S a. Determine the cost of one unit each of ZX300 and SL500, assuming a company-wide overhead rate is used based on total machine hours. Round rate to two decimal places. Overhead rate based on total machine hours 15.67 ✔per machine hour Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places. 5 Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed Product Costs per Unit ZX300 30 9 60 5,000 1,500 50 1,000 0x1 0x 0x 0x 0x 0x 0x5 0x 0x5 SL500 0x 0x 0x 0x 0x 0x 0x 0x 0x