3 4 Camping Supplies, Inc. manufactures two types of safety strobe lights, one that is visible for 5 one mile and one that is visible for two miles. Manufacturing overhead ahs been appliedon the 6 basis of direct labor costs. Camping Suppliers has gathered some activity information and is 7 interested in implementing an activity-based costing system. The company wants all overhead 8 costs to be allocated to products. The overhead cost pools and activity drivers are as follows: 9 110 Activity Pool Overhead Costs Total Drivers Usage 11 Machine setup $ 32,000 500 setups | 12 Assembly 36,000 12,000 machine hours 13 Total OH costs $ 68,000 14 15 Other product information is as follows: 11 16 H 17 One-Mile 18 Units produced 20,000 M 19 Direct material $6 per unit 120 Direct labor $8 per unit 21 Direct labor costs $20,000 M 22 Machine setups 011 23 Machine hours 4,000 Two-Mile 20,000 $8 per unit $10 per unit $14,000 350 8,000 150 EPH 24 25 Requied: MI 26 a. Using the traditional method, calculate the predetermined overhead rate as a percentage of EPH 27 direct labor costs. JM 29 0011 30 TEPH 31 32 b. Using the activit-based costing approach, determine the two activity rates. 00133 7c. Using the activity-based costing approach, determine the unit product costs for the 3 one mile light 0 Direct material 1 Direct labor 2 Overhead 13 Total costs