1) Munoz Sporting Equipment manufactures baseball bats and tennis rackets Department produces the baseball bats, and Department produces the tennis rackets Munoz currently uses plantide allocation to allocate its overhead to all products Direct tabor cost is the allocation base. The rate used is 200 percent of direct labor cost. Last year, revenue, material, and direct labor were as follows Baseball BatsTennis Rackets Sales revenue $1,595,000 $1,100,000 Direct labor 300,000 150,000 Direct materials 562,000 292,000 Required: a. Compute the profit for each product using plantwide allocation b. Maria, the manager of Department was convinced that tennis rackets were really.more profitable than bebal bats. She asked her colleague in accounting to break down the overhead costs for the two departments. She discovered that he department rates bened Department would have had a rate of 150 percent of direct labor cost and Department would have had a rate of 100 percent of direct labor cost. Recompute the profits for each product using each department's allocation rate (ted on direct labor cout) wat 2) Cathy, the manager of Cathy's Catering, Inc, uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires 4 people to serve and clean up. Cathy offers two types of parties--an afternoon picnic and an evening formal dinner The breakdown of the costs follows. Activities and cost drivers) Afternoon Picnic Formal Dinner Advertising (parties) $81 per party $81 per party Planning (parties) $80 per party $134 per party Renting equipment (parties, guests1944 per party plus $13 per guest$74 per party plus $24 per quest Obtaining insurance (parties) $220 per party $450 per party Serving (parties, servers) $49 per server per party $71 per server per party Preparing food ipuests) $19 per quest 525 per quest Per party costs do not vary with the number of guests Required: a. Compute the cost of a 20-guest afternoon picnic b. Compute the cost of a 20 quest evening formal dinner c. How much should Cathy charge for each guest for each type of party if she wants to cover her costs