$1.$ Compute the activity$-$based overhead rates for each of the four activities. Activity $3$: Website Optimization

You found it difficult to find an exact cost driver for this to reflect the amount of work spent on

cups with graphics and lid options. Based on your discussions with IT employees, you found

they spend about $20\%$ of their time developing the website for the standard cups $($Product $1),$

and the other $80\%$ of their time on the cups with options $($Product $2$ & Product $3).$ Total

overhead allocated is $$129,000.$ Activity $4$: Graphics & Straw Assembly

None of these costs should be allocated to Product $1.$ These costs include equipment, rent, and

supervisory labor. Total overhead allocated to this activity is $$123,900.$ You chose to base the

cost driver on levels at capacity instead of actual production, similar to Activity $3.$

$2.$ Compute the product costs for each product utilizing ABC.

a$.$ Single$-$Color Cold$/$Hot Cup with Sip Lid

b$.$ Single$-$Color Cold$/$Hot Cup with Sip Lid and One Graphic of Choice

c$.$ Single$-$Color Cold$/$Hot Cup with Sip Lid, Straw Lid and Two Graphics of ChoiceActivity $1$: Picking Materials

Activity $2$: Inventory Selection and Management