Coffee Bean Incorporated (CBI) processes and distributes high-quality coffee. CBI buys coffee beans from around the world and roasts, blends, and packages them for resale. Currently, the firm offers 2 coffees to gourmet shops in 1-pound bags. The major cost is direct materials; however, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. The company uses relatively little direct labor. CBI prices its coffee at full product cost, including allocated overhead, plus a markup of 30%. If its prices are significantly higher than the market, CBI lowers its prices. The company competes primarily on the quality of its products, but customers are price conscious as well. Data for the current budget include factory overhead of $3,753,690, which has been allocated on the basis of each product's direct labor cost. The budgeted direct labor cost for the current year totals $600,000. The firm budgeted $6,000,000 for purchase and use of direct materials (mostly coffee beans). The budgeted direct costs for 1-pound bags are as follows: Mona Loa Malaysian Direct materials $ 4.20 $ 3.20 Direct labor 0.30 0.30 CBI's controller, Mona Clin, believes that its current product costing system could be providing misleading cost information. She has developed this analysis of the current year's budgeted factory overhead costs:Budgeted Driver Activity Cost Driver Consumption Budgeted Cost Purchasing Purchase orders 1, 239 $ 582, 330 Materials handling Setups 1,980 990,080 Quality control Batches 850 204,809 Roasting Roasting hours 86,490 691,920 Blending Blending hours 39,312 786,240 Packaging Packaging hours 24,960 499, 208 Total factory overhead cost $ 3,753, 690 Data regarding the current year's production for the Mona Loa and Malaysian lines follow. There Is no beginning or ending direct materials inventory for either of these coffees. Mona Loa Malaysian Budgeted sales 160,608 pounds 2,608 pounds Batch size 10,080 pounds 500 pounds Setups 3 per batch 3 per batch Purchase order size 25,060 pounds 500 pounds Roasting time 1 hour per 180 pounds 1 hour per 103 pounds Blending time 0.5 hour per 100 pounds 0.5 hour per 108 pounds Packaging time 0.1 hour per 106 pounds 0.1 hour per 100 pounds Coffee Bean has total practical capacity as noted in the table below, i.e. processing 1,300 purchase orders, 2,900 setups, etc. These are the levels of activity work that are sustainable.Practical Activity Capacity Purchasing 1,300 Materials handling 2,900 Quality control 1, 460 Roasting 130,090 Blending 38,060 Packaging 36,090 Required: 1. Determine the activity rates based on practical capacity and the cost of idle capacity for each activity. (Round "Usage %" and "Practical Capactity Rate" to 2 decimal places. For percentages .1234 = 12.34%.) Practical Budgeted Budgeted Cost Usage Based Capacity at Rate Usage % Practical Unused Idle Capacity Activity Activity Current Capacity Rate Capacity Cost Spending Purchasing 1,239 $ 582,330 1,300 Materials handling 1,980 S 990,000 2,900 Quality control 850 204,000 1,400 Roasting 86,490 $ 691,920 130,000 Blending 39,312 S 786.240 38,000 Packaging 24,960 499,200 36,000 $ 3,753,690 0