Activity-Based And Department Rate Product Costing and Product Cost Distortions Black and Blue 5ports Inc. manufactures two products: snowboards and skis: The factory overhead incurred is as follows: The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: The activity-base usage quantities and units produced for the two products follow: 1. Determine the factory overhead rates under the multiple production department rate methodi Assume that indirect labor is associated with the production departments, 50 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. 2. Determine the total and per-unlt 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. 3. Determine the activity rates, assuming that the indirect labor is associated with activitien rather than with the production departments. Round per. unit anounts to the nearest whole cent. 3. Determine the activity mates, assuming that the indirect labor is associated with activities rather than with the production departments. Round per unit amounts to the nearest whole cent. 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. 5. Comment on the difference in the per-unit ovechead allocated to each product under the muliple production department factory overhead rate and activity-based costing methods. The activity-based overhead allocation reveals that consume more factory overhead on a per-unit basis than do labor hours. The method dons not show this because all factory overhead is assumed to be proportional to direct whicid separately accounts for the production control and materials handing activity costs. Snowboards have of styles. Thus, snowboards have higher activity cost per unit than skik