1. Liberal Minority Inc. (LMI) is plastic injection molding company specializing in front-end grilles. For 2019, it estimated overhead costs of $12,560,000 to be allocated using an activity-based costing system (see the table below). LMI also estimated that direct labour will be paid at the rate of $15 per hour. Activity Cost Pool Total Quantity of Allocation Base Estimated cost Driver Cost (allocation base) $ 1,450,000 Direct materials 2,000,000 Direct labour Indirect materials Indirect labour and supervision Utilities $6,590,910 100,000 hours Inspection 3,598,000 Power consumption 4,200,000 Inspection 1,312,000 Machine usage $12,560,000 20,000 kilowatt-hours (kWh) 15,000 inspections 160,000 machine-hours Depreciation During January 20X5, Gilbert worked on two jobs, which consumed the following resources: Job 2015-A1 Job 2015-A2 Direct materials cost $ 6,500 $ 22,000 Direct labour cost $42,000 $165,000 Machine-hours 1,800 7,000 Number of inspections 200 200 Power consumed (kWh) 800 800 Number of units 100 20 At the end of the year, LMI recorded the consumption of resources as follows: direct materials, $6,660,800; direct labour, 101,540 hours; machine-hours, 158,700; power consumption, 20,370 kilowatt-hours; number of inspections, 14,780. The company also recorded actual overhead amounting to $12,538,250. Required: a) Compute the activity rate for each activity cost pool. b) Compute the cost per unit using activity-based costing. c) Determine the total manufacturing overhead applied to jobs during the year. d) Calculate the under- or overapplied overhead for the year and show how you will dispose of this amount at the end of the year