5. ACTIVITY-BASED COSTING. Daisy Bakeries is a medium-sized bakery producing four lines of products: bread, cakes, pies, and cookies. It is currently charging its $750,000 of overhead to the product lines based on the number of direct labor hours used. Its owner Rhonda Daisy, recently went to a Small Business Association meeting where she attended a presentation on ABC. Rhonda wants to see if ABC makes any sense for her business. She has done a basic study to identify her key activities and their costs. She has also identifiecd how much of each cost goes to each product line. This information is contained in the fol lowing two tables. Daisy Bakeries Driver Machine Baking Dollars $132,000 $362,250 Number Activity Blend batter 4,400 Bake Driver Number Batches Units frosted Packages Direct labor hours $33,000 90,000 $88,750 44,000 $750,000 2,750 5,000 Activity Cleanup Frosting Packaging Miscellaneous TOTAL 10,000 Ples Cookies 325,000 3,600,000 3,000 750 Total N/A 10,000 4,400 8,050 2,750 5,000 17,750 Cakes Bread 50,000 3,500 2,500 3,000 1,000 Driver Units Made Direct labor hours Machine hours Baking hours Batches made Units frosted Packages 1,500 750 750 500 2,000 2,500 2,000 400 1,600 1,000 250 3,000 1,250 10,000 4,000 REQUIRED a. Using direct labor hours as your driver, calculate how much overhead is currently being charged to each of the product lines. b. Calculate the amount of overhead per unit for each of the product lines c. Calculate the activity rates for each of the ABC drivers noted d. Charge out overhead using the ABC rates. e. Calculate total overhead by product line. f. Calculate overhead by unit made for each of the product lines g. What does this information tell you? What specific recommendations would you make to Rhonda regarding Daisy Bakeries