antwide Overhead Rate, Activity-Based Costing, Job Costs to-Fast Copy Shop provides a variety of photocopying and printing services. On June 5, the owner invested in some computer-aided thotography equipment that enables customers to reproduce a picture or illustration, Input it digitally into the computer, enter text into he computer, and then print out a four-color professional quality brochure. Prior to the purchase of this equipment, Foto-Fast Copy hop's overhead averaged $30,400 per year. After the installation of the new equipment, the total overhead Increased to $91,200 per ear. Foto-Fast Copy shop has always costed Jobs on the basis of actual materials and labor plus overhead assigned using a eredetermined overhead rate based on direct labor hours. Budgeted direct labor hours for the year are 7,600, and the wage rate is $6 per mour. Required: 1. What was the predetermined overhead rate prior to the purchase of the new equipment? per direct labor hour 2. What was the predetermined overhead rate after the new equipment was purchased? per direct labor hour 3. Suppose Rick Anselm brought in several items he wanted photocopled. The job required 400 sheets of paper at $0.02 cach and 36 minutes of direct labor time. What would have been the cost of Rick's job on May 20? On June 20? If required, round your answers to the nearest cent. Total job cost May 20 June 20 4. Suppose that the owner decides to calculate two overhead rates, one for the photocopying area based on direct labor hours as before, and one for the computer-aided printing area based on machine time. Estimated overhead applicable to the computer-aided printing area is $60,800, and forecasted usage of the machines is 2,200 hours. What are the two overhead rates? If required, round your answers to the nearest cent. Overhead Rate Photo-copying per direct labor hour Computer-aided printing per machine hour Which overhead rate system is better--one rate or two? Two rates