i need an answer to question 4b

2. Compute the activity based overhead rates for each of the four activities We can calculate the activity based overhead rates by Estimated overhead / Expected use of cost driver Activity cost pool Estimated overhead Expected use of cost driver Picking prints $30.600 102,000 prints Inventory selection and 591,700 131.000 components management Website optimization $25 800 100,000 print capacity (unframed) Website optimization $103,200 25,000 print capacity framed) Framing and matting 5123,900 59,000 components capacity COM activity-Based overhead rates $0.30 per print 50.70 per components $0.258 per print 54.128 per print 52.1 per component 1 223 3. Discuss the implications of using operating capacity as the cost driver rather than the expected units sold when allocating foed overhead costs (a) Allocate the overhead to the three product categories (unframed prints, steedframed prints. and wood-framed prints with matting), assuming that the estimate of the expected units sold is correct and the actual amount of overhead incurred equaled the estimated amount of $375,200 Overhead Costs Number of Units Sold Cost assigned Total assigned costs per product $24,000 80,000 556.000 $100,640 $20,640 Product Categories Manufacturing OH - Prints of picking 10.30 Unframed - Inventory selection and prints management 10.701 Website optimization (25) - Prints of picking 10.30 - Inventory selection and Steel-Framed management 10.70-2) prints - Website optimization (412) Framing and Matting (2.102) 15,000 . 54.500 $21,000 $61.920 $63,900 5150,420 Wood framed prints / matting -Prints of picking 10.30 - Inventory election and management (0.70-3) Website optimization (412) Framing and Matting 12.10-3) 7,000 $2.100 514,700 $28,896 544.100 Total OH $340,856 b) Calculate the total amount of overhead allocated. Explain why the total overhead of $375,200 was not allocated, even though the estimate of sales was correct. What are the implications of this for management 12:27 1