Contra Costa Coffee Roasting Company of Alamo, California roasts two unique blends of coffee beans: Jump Start and Mid$-$Dy Break. These two unique blends are sold and shipped exclusively to gourmet coffee shops across the country.

Jump Start Mid$-$Day Break

Signature Blend Afternoon Blend Total Cost Roasting Machine Setups $600100$ $$36,000$

Roasting Inspections $30050$ $$12,000$

Labor hours $650250$

The company is considering switching from one overhead rate based on labor hours to $$ABC$($Activity$-$Based Costing$).$

Instructions

Perform the following analyses for these two components of overhead:

$1.$ Compute total roasting machine setups and roasting inspection costs assigned to each product, using a single overhead rate.

$2.$ Compute total machine setups and inspection costs assigned to each product, using activity$-$based costing.

$3.$ Comment on your findings.