(Solved): Unit-Based Versus Activity-Based Costing Fisico Company produces exercise bikes. One of its plants ...

Unit-Based Versus Activity-Based Costing Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model and a deluxe model. The deluxe model has a wider and sturdier base and a variety of electronic gadgets to help the exerciser monitor heartbeat, calories burned, distance traveled, etc. At the beginning of the year, the following data were prepared for this plant: Additionally, the following overhead activity costs are reported: Required: 1. Calculate the cost per unit for each product using direct labor hours to assign all overhead costs. 2. Calculate activity rates. Determine the cost per unit. If required, round your final answers to the nearest cent. Compare these costs with those calculated using the unit-based method. Which cost is the most accurate?