2. An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea, and it came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities follow: Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine related (machine hours) Estimated Overhead Cost $ 552,720 Activity Luxury Standard Total 1,000 1,400 2,400 321,000 1,186,800 800 1,200 2,000 5,000 7,000 12,000 4,096,000 $6,156,520 15,000 25,000 40,000 Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. Activity Cost Pool Purchase orders Rework requests Activity Rate per order per request Product testing Machine related per test per MH 3. Assume that actual activity is as expected for the year. Using activity-based costing, do the following: a. Determine the total amount of overhead that would be applied to each model for the year. (Do not round intermediate calculations and round your final answers to nearest whole dollar amount.) Total overhead cost Luxury Standard