Lucern Company reports the following for its overhead cost for the year.

 Lucern Company reports the following for its overhead cost for the year.
 

Activity    Budgeted Cost    Budgeted Activity Usage
Engineering support    $ 24,500    70    design changes
Electricity    34,000    3,400    machine hours
Setup    52,500    350    setups

1. Compute the activity rate for each activity using activity-based costing.

2. The company’s Pro model used these activities to produce 1,200 units during the year: 2 design changes, 140 machine hours, and 12 setups. Allocate overhead cost to the Pro model and compute its overhead cost per unit using activity-based costing.

 

Thanks