6 Avery Electronics uses an activity-based costing system for allocating overheads to products. The production manager has identified four activities involved in production. These activities and their overhead application rates are: Application rate $80 per setup $0.20 per part Activity Machine setups Fabrication $6.20 per direct labour hour Assembly $8 per unit Packing During the year, the company produced 300 Klarion monitors. Production of these monitors used 12 setups, 5,400 parts and 450 direct labour hours in the assembly department. What is the cost of overhead applied to each Klarion monitor? Show your working in the answer. (Hint: You may use the following table to complete this question. Read Example 23 on your workbook for more information about activity-based costing. (7 marks) Activity Rate Usage Applied Machine setups $80.00 $0.20 Fabrication Assembly $6.20 Packing $8.00 Total No. of units Overhead per Klarion monitor Assessment 1 total: 46 marks