Activity-Based And Department Rate Product Costing and Product Cost Distortions Black and Blue Sports Inc. manufactures two products: snowboards and skis. The factory overhead incurred is as follows: Indirect labor $507,000 156,000 Cutting Department Finishing Department 192,000 $855,000 Total 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: Activity Base Activity Production control Budgeted Activity Cost $237,000 270,000 $507,000 Number of production runs Number of moves Materials handling Total The activity-base usage quantities and units produced for the two products follow: Number of Production Runs Number of Moves Direct Labor Hours-Cutting Direct Labor Hours- Finishing Units Produced 6,000 6,000 430 Snowboards 5,000 2,000 4,000 2,000 70 Skis 2,500 4,000 7,500 6,000 6,000 Total 500 12,000 Required: Previou Required: 1. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so 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. Department Production Department Rate Cutting Department per direct labor hour Finishing Department per direct labor hour 2. Determine the total and per unit factory overhead costs allocated to each product, using the multiple productidh department overhead rates in (1). Round per unit amounts to the nearest whole cent. Product Total Factory Overhead Factory Overhead Per Unit Snowboards