5 Kitchen Supply, Inc. (KSI), manufactures three types of flatware: Institutional standard, and silver, it applies all Indirect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company witch to an activity-based costing system and prepared the following cost estimates for year 2 for the recommended cost drivers 2 points Processing orders Betting up production Handling materials His depreciation and maintenance Performing quality control Parking Total estimated coat Cover Number of ordere Number of production run Pounds of materials used Machine hours Number of inspections Mbro unita Cost 3 51,750 144,000 242,000 200,000 44,000 150,000 5912,550 Driver ty 225 orders NO 110,000 pounde 14.000 hours 35 inspections 500,000 units Pro In addition, management estimated 7700 direct labor- hours for year 2. Assume that the following cost driver volumes occurred in January, year 2. Toational standard silver Mber of units proced 64,000 26,000 Dit material conta 8,000 $42.000 $23,000 514.000 Direet labor-hours 400 400 620 Number of andere 10 5 Number of production runs 2 2 6 Pounds of material 16,000 7.000 Machine-hours 3.300 140 90 Number of inspection 2 2 3 Units shipped 64,000 26,000 3,000 Actual labor costs were $16 per hour. Required: a. (1) Compute a predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the consultant Reg A1 Reg A2 ReqB Reqc Compute the production costs for dach product for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement a(2). (Do not round intermediate calculations.) Institutional Standard 42,000 $ 23,000 Silver 14,000 $ Total 79,000 $ Account Direct materials Direct labor Indirect costs Total cost Complete this question by entering your answers in the tabu below. Reg A1 Req A2 Reqs Reqc Compute the production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) (Do not round Intermediate calculations.) Show less Total Account Direct materials Institutional Standard $ 42,000 $ 23,000 $ Silver 14,000 $ 79,000 Direct labor Indirect costs Processing orders Setting up production Handling materials Using machines Performing quality control Packing Total cost