2 Problem 17-3B Using activity-based costing to allocate overhead cost, and compute overhead cost per unit and gross profit per unit mp3 Refer to the information in Problem 17-2B. Additional information on overhead cost follows. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage $160,000 22.000 Mixing Electricity Inspection Total Direct labor hours (DLH) Machine hours (MH) Inspections 40,000 10,000 490 98.000 $280.000 Required 1. Compute an activity rate for each activity using activity-based costing. 2. The following actual activity usage produced 12.000 units of Extra Fine and 8,000 units of Family Style. Allocate overhead cost to Extra Fine and to Family Style and compute overhead cost per unit for each product using activity-based costing. Activity Usage Activity Cost Driver Extra Fine Family Style Direct labor hours (DLH) Machine hours (MH) Inspections 28,000 6,000 274 12.000 4,000 216 3. Compute product cost per unit for Extra Fine and for Family Style. 4. For each product, compute the gross profit per unit (selling price per unit minus the product cost per unit), 12:19 PM Ah om