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QUESTION 27 SECTION 3: Activity Based Costing (15% or approximately 18 minutes. 15 marks in total) Read the following information to answer questions 3.1 - 3.8. Sprung suspension manufactures and installs standard and custom-designed car suspension. Last year, the company incurred $1,200,000 in overhead costs when a total of 40,000 direct labour hours were incurred. After implementing activity-based costing (ABC), the company's accountant identified the following related information: Proportion of Activity Allocation Base Overhead Cost purchasing Number of purchase orders 10% Material delivery and handling Number of deliveries 20% Design Hours of design time 30% Installation Hours of installation time 40% The number of activities for standard and custom-made cabinets is as follows: Standard Custom- made Number of purchase orders 1,000 1,400 Number of deliveries 200 400 Hours of design time 200 800 Hours of installation time 700 300 During the past year, Sprung suspension accepted order no. 37 for one custom-designed car suspension installation that would require the following: Direct labour hours 20 Number of purchase orders Number of deliveries Hours of design time Hours of installation time Question 3.1: calculate the overhead rate based on the traditional overhead allocation method using direct labour hours as the base. NOTE: Enter only the number of dollars, do not enter the dollar, "S" , symbol. Therefore if your answer is "$10", enter only "10". 30QUESTION 28 Question 3.2: Calculate the total overhead applied to order no. 37 using the traditional overhead rate calculated in question 3.1 above. NOTE: Enter only the number of dollars, do not enter the dollar, "$" . symbol. Therefore if your answer is *$10", enter only "10". 200 QUESTION 29 Question 3.3: Using activity based costing (ABC), calculate the overhead rate for the following activity: Purchasing. That is, what is the overhead rate per delivery? NOTE: Enter only the number of dollars. do not enter the dollar. "$". symbol. Therefore if your answer is "$10", enter only "10". QUESTION 30 Question 3.4: using activity based costing (ABC), calculate the overhead rate for the following activity: Material delivery and handling. That is, what is the overhead rate per delivery? NOTE: Enter only the number of dollars, do not enter the dollar, "$" . symbol. Therefore If your answer is "$10", enter only "10".Question 3.4: using activity based costing (ABC), calculate the overhead rate for the following activity: Material delivery and handling. That is, what is the overhead rate per delivery? NOTE: Enter only the number of dollars, do not enter the dollar, "$" , symbol. Therefore if your answer is "$10", enter only "10". QUESTION 31 Question 3.5: using activity based costing (ABC), calculate the overhead rate for the following activity: Design. That is, what is the overhead rate per hour of design? NOTE: Enter only the number of dollars, do not enter the dollar, "$" , symbol. Therefore if your answer is "$10", enter only "10". QUESTION 32 Question 3.6: Using activity based costing (ABC). calculate the overhead rate for the following activity: Installation, That is, what is the overhead rate per hour of Installation? NOTE: Enter only the number of dollars. do not enter the dollar. "$", symbol. Therefore if your answer is "$10", enter only "10". QUESTION 33 Question 3.7: Using activity based costing, what would be the total overhead applied to order no. 37? NOTE: Enter only the number of dollars, do not enter the dollar. "$", symbol. Therefore if your answer is "$10", enter only "10"