help please

ottage Bean Inc (CEl) processes and distributes atrariety of coffee. CBI buys coffee beans from around the world and roasts, blends, and packages them for reale. Wurrentiy, the firm offers 15 coffees to gourmet shops in 1-pound bags The major cost is direct materials, however, a substantial amount of factory overhead is incurred n the predominantly automated roasting and packing process. The company uses relatively little direct labor. Some of the colfees are very popular and sell in large volumes: a few of the newer brands have very low volumes. CBI prices its coffee at full product cost, including allocated overhesd, plus a markup of 30K. Ifits prices for certain coffees are significantly higher than the market, CBI lowers its prices. The company competes primarily on the quality of its products, but customers are price conscious as well. Data for the current budget include factory overhead of $3,000,000, which has been allocated on the basis of each product's direct labor cost. The budgeted direct labor cost for the curtent year totals $600,000. The firm bucgeted $6,000,000 for purchase and use of direct materials (mostly coffee beans). The budeeted direct costs for 1 -pound bass of two of the company's manu products are as follows: Cbis controller, Mona Clio, believes that its current product costing system could be providing misleading cost information. She has developed this analysis of the current year's budgeted factory overhead costs: 30 Data regarding the curtent year's production of just two of ity lines, Mons toa and Malaysan, follow. Thereisno beginning or ending direct materialsinventory for either of these coffees Data tegarding the current year's production of just two of it's lines, Mona Loa and Malaysian, follow. There is no beginning or ending direst materials inventory for either of these coffees. a. Determine the compary's presef ermined overhesd rate (Powis) wing direct labor cost as the sngle cout driver. b. Determine the full product costi and welling prices of one pound of Mona toa coffee and one pound of Malarian coffce. 2. Uling Activity bused conting approach a. Determine the activity divers for each cost pool b. Determine the allocated overhed for exch product, Mona toa and Malayian c. Determine the full product costs and selling prices for one pound oi Mana toa coffee and onepound of Malarian cotfee. 3. Dvcuss whether the copmany thould conuder clunging to the activity based costing method