College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company employees recommended that CSC switch to activity-based costing and Identified the following activities, cost drivers, estimated costs, and estimated cost driver units for Year 5 for each activity center. Estimated Cost Estimated Cost Driver Units Recommended Activity Cost Driver Number of production Setting up production runs Processing orders Number of orders Handling materials Pounds of materials Using machines Machine-hours Providing quality management Number of inspections Packing and shipping Units shipped $ 32,000 48,000 18,000 84,000 48,000 40,000 $270,000 100 runs 200 orders 9,000 pounds 12,000 hours 40 inspections 20,000 units In addition, management estimated 2,000 direct labor-hours for year 5. Assume that the following cost driver volumes occurred in February, year 5. Short 900 $3,000 Medium 400 $2,000 Tall 400 $1,500 120 90 130 Number of units produced Direct materials costs Direct labor-hours Number of orders Number of production runs Pounds of material Machine-hours Number of inspections Units shipped 500 400 4 900 200 200 200 1 2 900 400 300 Direct labor costs were $20 per hour. Required: a. Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute a predetermined rate using direct labor-hours as the allocation base. b. Compute the production costs for each product for February using direct labor-hours as the allocation base and the predetermined rate computed In requirement a c. Compute the production costs for each product for February using the cost drivers recommended by the employees and the predetermined rates computed In requirement a. (Note: Do not assume that total overhead applied to products In February will be the