2. The Director of Operations has identified 4 production activities to be used with activity-based costing and has budgeted the cost of each activity. The director determined the activity base to be used in calculating each activity's rate, and estimated the activity base usage for each. The director's identified activities and budgeted amounts are as follows: Budgeted Estimated Usage of Activity Base Activity Cost of Activity Small Medium Large Total Cutting (machine hours) $ 33,250.00 2,600 MH 1,800 MH 920 MH 5320 Dyeing (units produced) $ 145,587.50 14,000 units 9,600 units 7,050 units 30,650 Stitching (direct labor hours) $287,287.50 500 DLH 2,275 DLH 750 DLH 3,525 $ 60,375.00 200 batches: 175 batches 150 batches 525 Packaging (batches) Calculate activity rates using the budgeted costs and estimated activity base usage given in the table above. (Notice that there is no total column in the table above, so do not forget that you need to divide the cost of the activity by the total expected usage for all three T-shirt sizes.) Enter the activity rates you have calculated in the "Activity Rate" column in the table below. Using your activity rates, calculate the total amount of budgeted factory overhead (not per-unit) that would be allocated to Small, Medium, and Large inventory using the activity rates. Budgeted Overhead Applied to: Activity Activity Rate Dyeing 4145,587.5030650 Cutting 433,2605320. Per M5 *14,000=0 46.25 MH Small X 2600 MH Medium 416,250 per unit $16,500 Stitching $287,287.503525 per DLH Packaging 460,375 525 per batch Total Page 12 Large