Question 4 (14 points) A company uses activity-based costing to allocate overhead. The activity cost pools are as follow

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Question 4 (14 points)A company uses activity-based costing to allocate overhead. Theactivity cost pools are as follows:Total EstimatedActivityGeneral factoryMachine setupsSpecial processingCustomer supportExpected Activity14,000 direct labour hour800 setups4,000 machine hours50 customersOverhead Cost$9,80028.600196.0003.500Each unit requires $425 in direct material and 15 direct labourhours. The direct labour rate is $23per hour. The selling price is $1,700 per unit.A customer has placed an order for five units that will require atotal of two setups and 41 machinehoursRequired:1. Calculate the activity rates (round to two decimal places). (4marks)2. Calculate the product margin on the customer order. (8marks)3. Calculate the customer margin. (2 marks)