Computing Product Costs Using Activity-Based Costing, Service Company. Roseville Community Bank uses activity-based costing to assign overhead costs to two different loan products, student loans and auto loans. The bank identified the following activities, estimated costs for each activity, and identified cost drivers for each activity for this coming year. These are the first three steps of activity-based costing.) Activity Meeting with customers Reviewing applications Running credit reports Total Cost Driver Hours of meeting time Number of applications reviewed Number of credit reports run Estimated Annual Overhead Costs $400,000 120,000 420,000 $ 940,000 Estimated Annual Cost Driver Activity 20,000 hours 8,000 applications 6,000 credit reports The following information for the two loan products offered by Roseville Community Bank is for the month of July: Student Loans Auto Loans Direct labor cost per loan Overhead cost per loan Total cost per loan Loans approved $250 ? $ ? 100 loans $150 ? $ ? 300 loans Actual cost driver activity levels for the month of July are as follows: Student Loans Auto Loans Hours of meeting time Number of applications reviewed Number of credit reports run 400 175 150 350 700 550 Required: a. Using the estimates for the year, compute the predetermined overhead rate for each activity (this is step 4 of the activity-based costing process). b. Using the ate calculated in requirement a and the actual cost driver activity levels shown for July, allocate overhead to the two products for the month of July C. For each loan product, calculate the overhead cost per loan approved for the month of July. Round results to the nearest cent. d. For each loan product, calculate the total cost per loan approved for the month of July. Round results to the nearest cent. e. Assume you are the manager of the auto loans product line and would like to reduce the amount of overhead costs being applied to your products. Which activity