Activity-Based And Department Rate Product Costing and Product Cost Distortions Islack and Blue Sports Inc, manufactures two products: snowboards and skin. The factory overhead incurred is as follows: 5507,000 Indirect labor Citting Department Finishing Department 156,000 192,000 5855,000 Total The activity bose associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: Activity Production control Material handling Test Budgeted Activity Cost $237,000 270,000 $507,000 Activity Base Number of production runs Number of moves The activity baterage quantities and units produced for the two produits Follow Number of Production Runs Direct Labor Hours Cutting Number of Moves 5,000 Direct Labor Hours Finishing 7.000 4,000 Snowboards skos 4,000 2,000 Units Produced 6,000 6,000 70 2,500 eBook Calcuno Printem Number ol Production uns Direct Labor Hours-Cutting Number of Moves 3,000 Units Produced 0,000 snowboards Skis 430 20 500 Direct Labor Hours Finishing 2000 4.000 6.000 4,000 2,000 6,000 2,500 7,500 6,000 12.000 Required: 1. Determine the factory overheid te nder the multiple production department rate method, Assume that indirect laborated with the production that the total factory overhead 1 5315,000 and $540,000 for the cutting and Finishing department, respectively. Hound per unit amounts to the nearest whole cont Department Production Department Rate Cutting Department per direct latior hour Finishing Department per duet lobor hour 2. Determine the total and per unit factory odstocated to each oth multe production des teves (1) Rend per unit amants to the rest wholescent Product Total Factory Overhead Factory Overhead Per Unit Sorboards sk 3. Determine the activity rate, suming that the erect laborated with a rather than with the production department Round per unit amounts to the nearest whole cent Activity Activity Rate Production Contra pero un per eBook Calculator Pemen Finishing Department per direct labor hour 2. Determine the total and per me toctor had come allocated to each product, in the multiple production department overhead rates (1) Bound per sit amounts to the nearest whole cent Product Total Factory Overhead Factory Overhead Per Unit Snowboard 3. Determine the nativity assuming that the indirect labor sociated with activities rather than with the produccion departments found per unit amounts to the nearest whole cent Activity Activity Rate Production Control per prd, nin Material Handling per move Cutting Department sing Department peroth 1. Dening the total perunt est assigned to each product under activity based costing Hound the per unit amounts to the nearest whole cent. Product Total Activity Cout Activity Cast Per Unit nowboard Carment on the difference in the personit verband allocated to each product under the multiple production department hadhary verhead Vie and wavity-based conting methods The antity based on that The who shows the factory over med to be portional to direct labus The method wately accounts for the production cotrol and materials and activity Coutshowboards voor production control and material handling activities then do this this is because nowboards are made in aller Tots, mapleting wide variety of styles. Thus, snowboards vegherativity costs per un than