For many years, Sinclair Graphic Design has provided design and digital printing services for indoor banners. The nylon banners, which come in a standard size, are used for a variety of purposes, including trade shows, sporting events, and other promotional activities. Three years ago, the company introduced a second printing and production service for outdoor banners that has become increasingly popular. The outdoor banners are a more complex product than the indoor banners, requiring weatherproof vinyl materials and a different printing process to improve the visibility of the text and graphics content. Moreover, outdoor banners are printed in smaller production runs because of less frequent orders: the setup of the printing equipment takes longer; and, since higher durability is needed to withstand the elements, more quality inspections are needed. Under the traditional costing approach, overhead costs are assigned to the products on the basis of direct labour hours. Despite the introduction of the new outdoor banners, profits have declined steadily over the past three years. Managements beginning to believe that the company's costing system may be at foult. Unit costs for materials and labous for the two products follow Indoor Outdoor Banners Direct materials 513150 $31.40 Direct labour (529 per hour) $ 29 Banners Management estimates that the company will incur $1.440,000 in overhead costs during the current year and that 12.000 indoor banners and 2.400 outdoor banners will be produced and sold Required: 1-o. Compute the predetermined overhead rate assuming that the company continues to apply overhead cost to products on the basis of direct labour-hours. (Round your answer to 2 decimal places.) Predetermined overtitate per direct about hour Activity Center Order processing Print setup Graphic design Quality control Predetermined Overhead Rate per order per setup per hour por inspection 3. Using the predetermined manufacturing overhead rates that you computed in (2) above, do the following: a. Determine the total amount of manufacturing overhead cost that would be applied to each product using the ABC system. After you have computed these totals, determine the amount of overhead cost per unit of each product Overhead Applied Indoor Outdoor Banners Banners Activity Cost Pool Order processing Print set up Graphics design Quality control Total overhead cost Number of units produced Overhead cost per unit b. Compute the unit product cost of each product. (Round your answers to 2 decimal places.) Indoor Outdoor Unit product cost 4. This part of the question is not part of your Connect assignment