How to answer the required questions in problem 3 and problem 4?

PROBLEM 3 PROBLEM 4 Value-Added and Non-Value-Added Activities Allocation Rates and Driver Rates A company's sole product, a unique end table made from lumber, is produced and sold The Lazzy Division of Shoppee Company manufactures many high-volume products in the following sequence of steps: and many low-volume products. Selected information follows for Lazzy's most recent year of operations: (a) wood received and inspected at receiving dock (b) wood moved to stores inventory Indirect costs: Machine related: (c) wood moved to Cutting Department Machine operation $ 75,000 (d) wood cut to size Machine setup 50,000 (c) moved to Planing Department (9) placed in queue to await planing Materials related (g) wood smoothed and shaped Materials handling $ 45,000 moved to Inspection Department Other materials-related 60,000 inspected Other overhead 190,000 moved to in-process storage area Machine hours 10.000 (k) moved to Assembly Department Pounds of materials 50.000 (1) various parts of the table are assembled Setup hours 1.000 (m) placed on hand truck to await material handler Purchase orders 1,200 (n) moved to Staining Department Direct labor hours 25,000 (0) tables stained (p) moved to Inspection Department Lazzy's existing cost system allocates all machine-related overhead based on machine (q) inspected hours and all the remaining overhead based on direct labor hours. However, a recent (r) moved to Shipping Department study determined that machine setup costs and material handling costs are primarily (s) tables shipped related to setup hours, and other materials-related costs are primarily related to the number of purchase orders issued. Lazzy does not keep significant materials inventories on hand. Required: Which of the steps add value to the product? Required: (1) Calculate the two overhead rates in Lazzy's existing cost system for the most recent year. (2) Calculate the overhead (driver) rates that an ABC system would use for the most recent year, making only the changes suggested by the results of the recent study