Tailgator Company produces four versions of its model J7-21 bicycle seat. The four versions have different shapes, but their processing operations and production costs are identical. During July, the following costs were incurred:

Direct materials:
Leather	$25,430
Metal frame	39,180
Bolts	3,010
Materials handling:
Labor	8,232
Equipment depreciation	4,410
Electrical power	2,460
Maintenance	5,184
Assembly:
Direct labor	13,230
Engineering design:
Labor	4,116
Electrical power	1,176
Engineering overhead	7,644
Overhead:
Equipment depreciation	7,056
Indirect labor	30,870
Supervision	17,640
Operating supplies	4,410
Electrical power	10,584
Repairs and maintenance	21,168
Building occupancy overhead	52,920

July's output totaled 29,400 units. Each unit requires three machine hours of effort. Materials handling costs are allocated to the products based on direct materials cost, engineering design costs are allocated based on units produced, and overhead is allocated based on machine hours. Assembly costs are allocated based on direct labor hours, which are estimated at 882 for July.

During July, Tailgator Company completed 520 bicycle seats for Job 14. The activity usage for Job 14 was as follows: direct materials, $1,150; direct labor hours, 15.

Required

1. Compute the following activity cost rates:

a. Compute the materials handling cost rate. % per dollar of materials

b. Compute the assembly cost rate. $ per direct labor hour

c. Compute the engineering design cost rate. Round your answer to the nearest cent. $ per unit

d. Compute the overhead rate. Round your answer to the nearest cent. $ per machine hour

2. Prepare a bill of activities for Job 14. Round per unit amounts to the nearest cent, and all other answers to the nearest whole dollar.

Tailgator Company Bill of Activities Job 14
Activity		Activity Cost Rate	Cost Driver Level	Activity Cost
Unit level
	Materials handling	% per dollar of direct materials	$ direct materials	$
	Assembly	$ per direct labor hour	direct labor hours
Batch level
	None
Product level
	Engineering design	$ per unit	units
Facility level
	Overhead	$ per machine hour	machine hours
Total activity costs assigned to job				$
Total units of job
Activity costs per unit				$

3. Use activity-based costing to compute the job's total cost and product unit cost. Round activity costs to the nearest dollar, and round unit costs to the nearest cent.

Cost summary
	Direct materials			$
	Activity costs
	Total cost of order			$
	Product unit cost			$