3. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round per unit amounts to the nearest whole cent. Activity Activity Rate Production Control $ 474 per prod. run Materials Handling $ 36 per move Cutting Department $ 26 per dih Finishing Department 32 per dih 4. Determine the total and per-unit cost assigned to each product under activity-based costing. Round the per unit amounts to the nearest whole cent. Product Total Activity Cost Activity Cost Per Unit Snowboards 551,820 $ 303,180 x Skis 91.97 X 50.53 5. Comment on the difference in the per-unit overhead allocated to each product under the multiple production department factory overhead rate and activity-based costing methods. The activity-based overhead allocation reveals that snowboards consume more factory overhead on a per-unit basis than do skis The multiple production department factory overhead rate X method does not show this because all factory overhead is assumed to be proportional to direct labor hours. The activity-based X method separately accounts for the production control and materials handling activity costs. Snowboards have more production control and materials handling activities than do skis. This is because snowboards are made in smaller lots, representing a wide variety of styles. Thus, snowboards have higher activity costs per unit than skis. Number of Production Number of Moves Direct Labor Hours-Cutting Direct Labor Hours- Finishing Units Produced Runs Snowboards 430 5,000 4,000 2,000 6,000 Skis 70 2,500 2,000 4,000 6,000 Total 500 7,500 6,000 6,000 12,000 Required: 1. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $315,000 and $540,000 for the Cutting and Finishing departments, respectively. Round per unit amounts to the nearest whole cent. Department Production Department Rate Cutting Department 52.50 per direct labor hour Finishing Department 90 per direct labor hour 2. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (1). Round per unit amounts to the nearest whole cent. Factory Overhead Per Unit Product Snowboards Total Factory Overhead 390,000 465,000 V 65 Skis 77.5