Keebee, Inc. produces desktop and laptop computers. The company currently uses traditional volume- based cost system and applies manufacturing overhcad cost to products on the basis of direct labor hours Cost information of these two products is as follows Unit Cost Information Direct materials Direct labor Manufacturing overhead $100 $160 $120 $230 Units produced Direct labor hours per unit Total direct labor hours 5,000 0.4 2,000 10,000 0.6 6,000 Total manufacturing overhead cost is $1,800,000. The management of Keebee, Inc. is evaluating the possibility of replacing traditional volume-based cost system with an Activity Based Costing (ABC) system. Four activity cost pools and activity cost drivers have been identified by management as follows. Activity Driver Laptop Activity Cost ruol Engineering and Activity Cost Total Activity $1,000,000 100,000 160,000 540.000 5,000 Design hours 5,000 10,000 Design hours ou setups designing Machine Assembling Quality inspection Design hours sU Setups 6,000 setup 2000 8,000 Direct iabor nours j virect iabor inours virect iabos 8,000 and testing insoection hoursInspection hours Inspection hours Answer the following questions: . Compute the activity rate for each activity cost pool. 2. Apply the activity rates to compute the manutacturing overnead assened to cacn