Bluefield has decided to use an ABC costing system and has identified the following detailed information about its cost pools and cost drivers: Activity cost pools Materials handling Machine maintenance $68,880 $15,190 Cost drivers Number of material moves Number of machine hours 560 49,000 Required: 1. Calculate Bluefield's activity rate for each cost pool 2. Determine the amount of overhead assigned to Bluefield's products if each has the following activity demands: Number of material moves Number of machine hours Product Product B 240 320 17,700 31,300 Majesty Company uses target costing to ensure that its products are profitable. Assume Majesty is planning to introduce a new product with the following estimates: Estimated market prices 1,500 Annual demand 90,000 units Life cycle 4 years Target profit 25 return on sales Required: 1. Compute the target cost of this product. 2. Compute the target cost if Majesty wants a 42 percent return on sales. 3. Compute the target cost if Majesty wants a 5 percent return on sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the target cost of this product. Target Cost