I need it to fit the outline that I provided.

PROBLEMS 12. ABC: Comparison with Traditional Costing LO:.3.4 Surfs Up manufactures surfboards. The company produces two models: the small board and the big board. Data regarding the two boards are as follows: Direct Labor AnnualTotal Direct Product Hours per Unit Production Labor Hours Big Small 1.5 1.0 10,000 boards 15.000 35,000 boards 35,000 The big board requires $75 in direct materials per unit, whereas the small board requires $40. The company pays an average direct labor rate of $13 per hour. The company has historically used direct labor hours as the activity base for applying overhead to the boards. Manufacturing overhead is estimated to be $1,664,000 per year. The big board is more complex to manufacture than the small board because it requires more machine time. Blake Moore, the company's controller, is consid- ering the use of activity-based costing to apply over head because the surfboards require such different amounts of machining. Blake has identified the fol- lowing four separate activity centers: Volume of Annual Activity Activity CenterCost Driver Machine setup Number of setups $100,000 100 100 Special design Design hours 364,000 900 100 ProductionDirect labor hours 900,000 15,000 35,000 Machining Machine hours 300,000 9,000 1,000 Traceable Big Small Costs Board Board Required A. Calculate the overhead rate on the basis of tradi- tional overhead allocation with direct labor hours as the base. B. Determine the total cost required to produce one unit of each product. (Use the overhead rate calculated in question A.) C. Calculate the overhead rate for each activity D. Determine the total cost required to produce E. Explain why overhead cost shifted from the center on the basis of activity-based costing techniques one unit of each product. Use the overhead rates calculated in question C high-volume product to the low-volume product under activity-based costing 12A 33.23 Iraditional Costing Big Board Small Board DM DL Total 12128 C With ABC, the overhead rates for each activity is Machine Setup Special Design: Production: Machining: 36 20 Big Board Small Board Machine Setup Special Design: Production Machining: Total 184)6 Ov Big Board Small Board DM DL OH(ABC) Total(Spu) 126 26 74.33