(CSC) makes three ty t labor-hours. dire College Supply Compa company emplovees recommended that CSC switch t drinkin asses: short, medium. esently applies overhead us edetermined bas activity-based costing and identifled the following activities, cost drivers, estimated costs, and estimated cost driver units for Year 5 for each activity center R F ted Coct $ 32,000 57.200 Stimated Cost Activity Setting up production Processing orders Handling materials Number of production runs Number of orders 100 runs 220 orders Pounds of materials 18,000 8 pound Providing quality management Packing and shipping Number of inspections Units shipped 48.000 40 inspections 18,000 units 36.000 $247,200 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 1,200 $4 110 Medium Tall Number of units produced ts S2 Direct labor-hours Number of orders Number of production runs 130 120 8 300 700 300 Machine-hours Number of inspections Units shipped 600 300 300 2 1,200 600 400 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. (Round your answers to 2 decimal places.) Activity Allocation Rate Setting up production Processing orders Handling materials Using machines Performing quality management Packing & shipping per run per order per lb. per hour per insp. per unit Direct labor hour rate per hour 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. (Do not round intermediate calculations.) Short Medium Tall Direct materials 4 000 S 2.000 S 2.000 Direct labor Overhead 4,000 S 2,000 S Total costs 2,000 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 same for activity-based costing as it was for the labor-hour-based allocation.) (Do not round intermediate calculations.) Short Medium Tall Direct materials 2.000 4,000 2.000 Direct labor Setting up production Processing orders Handling materials Using machines Performing quality management Shipping Total costs 4,000 $ 2,000 $ 2,000