Solution and Explanation:
Answer 1 Calculation of activity rate is as follows:
Stamping = Budgeted costs divided by Machine tour
= $200000 / 10000 = $20 machine hour
Assembly = Budgeted costs divided by Labor hour
= $400000 divided by 20000 = $20 labor hour
Setup = Budgeted costs divided by setup
= 30000 / 15 = 2000 setup
Answer 2 Overhead cost per unit = Total overhead cost divided by total units produced .
[tex]\text { Saws }=(((4000 * \$ 20)+(7000 * \$ 20)+(3 * 2000)) / 500[/tex]
Saws = $452 per unit
[tex]\text { Drills }=(((6000 * \$ 20)+(13000 * \$ 20)+(12 * 2000)) / 600[/tex]
Drills = $673 per unit