FairTrade Coffee Roasters, Inc.$($FCR$)$ harvests and grinds their own sustainable coffee beans for

sale in the U$.$S$.$ market. FCR uses the following machinery and direct labor hours for the relevant

type of coffee bean in its production process. Meanwhile, overhead costs relating to electricity for

machines hours are $$5,000$ and direct labor hours for grinding are $$6,400,$

$$ Dark Roast: $16$oz$.$ uses $6$ machine hours and $2$ direct labor hours.

$$ Light Roast: $16$oz$.$ uses $4$ machine hours and $6$ direct labor hours.

$(1$a$)$ Calculate the Overhead Application Rates per hour if FCR were to use an activity$-$

based costing method. $($Be sure to identify which rate is for machine usage and which is for

grinding$).$

$(1$b$)$ If FCR had used a Single Application Rate to allocate overhead costs to both dark

roast and light roast coffee beans at the same rate $($i$.$e$.,$ to each $16$oz bag of coffee beans equally

regardless of type$),$ would the overhead costs per coffee type be more accurate, less accurate, or

the same relative to using an ABC application rate? Why?