Brown Inc. manufactures office chairs. Presently the company assigns overhead to each product using direct labour hours to calculate a plantwide rate. The following information is available for the upcoming year Estimated factory overhead $960,000 Estimated direct labour hours 20,000 The company is considering implementing an activity-based costing system and has identified three activities. Resource drivers are used to assign costs to each activity. The following information about each activity is available: Estimated Total Activity Costs Cost Driver Estimated Driver Material handling $280,000 Parts 70,000 Assembly $320,000 Machine hours 40,000 Finishing $360,000 Direct labour hours 20,000 One of the models that the company produces uses the following resources: OC-16 Parts Machine hours Direct labour hours 14 3 2 Use the above information to answer the following questions about activity based costing The plantwide predetermined overhead rate, using direct labour hours as the cost driver, is $ per direct labour hour. A Assume that the actual direct labour hours were 8,400 direct labour hours. If the company uses the plantwide rate, then the total applied overhead would be A/ Using the plantwide overhead rate, the total overhead applied to one unit of OC-16 is $ If the company decided to use activity-based costing, then the overhead rate for Material Handling would be $_____ per part A/ If the company decided to use activity-based costing, then the overhead rate for Assembly would be $ per machine hour. A/ If the company decided to use activity-based costing, then the overhead rate for Finishing would be $ per direct labour hour. AM Using the activity based costing system, the total overhead applied for all activities to one unit of OC-16 is $ A