Diaz Company reports the following variable costing income statement for its single product. This company's sales totaled 45,000 units, but its production was 75,000 units. It had no beginning finished goods inventory for the current period. DIAZ COMPANY Income Statement (Variable Costing) Sales (45,000 units x $55.00 per unit) Variable expenses Variable manufacturing expense (45,000 units x $27.50 per unit) Variable selling and admin. expense (45,000 units x $4.50 per unit) Total variable expenses Contribution margin Fixed expenses $2,475,000 1,237,500 202,500 1,440,000 1,035,000 Fixed overhead Fixed selling and administrative expense Total fixed expenses 262,500 131, 250 393,750 2$ 641, 250 Net income 1. Convert Diaz's variable costing income statement to an absorption costing income statement. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Convert Diaz's variable costing income statement to an absorption costing income statement. DIAZ COMPANY Absorption Costing Income Statement Machine Use Hours Direct Labor Department 1 Department 2 $18,000 14,000 1,920 1,280 $32,000 3,200 Totals Factory overhead costs $ 11,400 5, 200 4,400 3,400 2,800 Rent and utilities Indirect labor General office expense Depreciation-Equipment Supplies $ 27, 200 Total factory overhead Compute the total amount of overhead cost allocated to Department 1 using activity-based costing. (Round activity rate answers to 2 decimal places.) Cost driver quantity OH Allocated Costs to be allocated Estimated Cost Estimated Cost driver Activity Rate incurred Indirect labor and supplies Rent, utilities, general office and depreciation