Computing Product Curte Uring Activity-Based Curting. Stilluator Company identified the following activitior, artimated carts for each activity, and identified cart drivers for each activity for this coming year. (There are the first throestops of activity-based carting.) Activity Ordering parts Tracking inventory of parts Running machines Inspecting finished products Total Cost Driver Number of purchase requisitions Number of parts purchased Machine hours Inspections hours Estimated Annual Overhead Costs $ 400,000 560,000 Estimated Annual Cost Driver Activity 80.000 parts purchased 5.000 purchase requisitions 350,000 200.000 $1,310,000 7,000 machine hour 1,000 inspection hours The company producer three products, 21, 22, and 23. Information about there products for the month of January Fallour: 21 23 || Direct materials cost per unit $100 Direct labor cost per unit 35 5 75 25 $200 70 Overhead cost per unit Product cost per unit Units produced 250 units 500 units Actual cart driver activity levels for the month of January are as follour: Number of purchase requisitions Number of parts purchased Machine hours Inspections hours 4,000 330 10 21 R 22 50 70 3,300 240 50 R 100 3,600 310 Required: 1. Uring the ortimator for the year, compute the predetermined overhead rate for each activity (this is stop 4 of the activity-based carting process). 2. Uring the activity rator calculated in requirement 1 and the actual cart driver activity lover shown for January, allocate overhead to the three products for the month of January (this is stop 5 of the activity-based carting 3. For each product, calculate the overhead cart por unit for the month of January. Round rouults to the nearest cont. 4.For each product, calculate the product cart per unit for the month of January. Round results to the nearest cont. ABC Stop 1. Identify cartly activities required to complete products. Step 2. Assign overhead carts to the activities identified instop 1. Step 3. Identify the cart driver for each activity. Stop 4. Calculate a predetermined overhead rate for each activity. Stop 5. Allocate overhead carts to products. $1 21 #2 zz 23 Activity Paul Cart Pank Estimated Driver OH Rate Ordering Parts Tracking Inventory of parts Running machiner Inspecting finished products 400,000 Purchase requisitions 560,000 of parts purchased 350,000 Machine hours 200,000 Inspection hours **** Driver 5,000 Driver Applied Ured Ozeche Ured Driver Applied Driver Applied Overhe Urad Overhe $0,000 7,000 1,000 #3 Unity Produced Qurbed Cartri Direct materials $4 Direct Labar Tatal Unit Cart