derro company has identified the following overhead activities and calculated the following application rates:

Activity

Cleaning equipment $100/batch

Purchasing ingredient $50/purchase

Advertising $500/Advertisement

Renting factory space $1000/flavor

a. What level of overhead is each of these overhead activities?

b. How much overhead would a new flavour receive if it were made in five batches, required 20 Purchases, and advertised twice?

c. if penalty of the factory space is available for the production of more ice cream flavors, will the company likely choose too many or too few?