ACC112 Name: In-class Assignment -Activity-Based Costing Problem 1: Activity-Based Costing Mountaineer T will ents manufactures and sells heavy and light duty tents to various outdoor retailers. To better sts, the company recently adopted an activity-based costing (ABC) system. The company estimates i incu in manufacturing overhead costs in the upcoming year. Based on an intense study of their r$900,000 following activities, allocation bases, and percentages of overhead costs were determined: Proportion of Overhead Cost Activity Purchasing Inspections Allocation Base Number of purchase orders Number of inspections Number of sales orders 55% 20% 25% Sales The estimated n um ber of activities for heavy and light duty tents is expected to be as follows: Heavy-duty Light-duty Number of purchase orders Number of inspections Number of sales orders 5,000 3,000 800 4,000 1,000 400 Required Calculate the amount of overhead that should be allocated to each of the three activities. A. B. Calculate the overhead rates for each of the three activities. If a single sales order requires 10 purchase orders and 30 inspections to fill, how much overhead should be applied to the order? C