it year's pi materials inventory for either of these coffees. Mona Loa Malaysian Budgeted sales 100, 090 pounds 2, 000 pounds Batch size 10, 090 pounds 500 pounds Setups 3 per batch 3 per batch Purchase order size 25, 090 pounds 500 pounds Roasting time 1 hour per 100 pounds 1 hour per 100 pounds Blending time 0.5 hour per 100 pounds 3.5 hour per 100 pounds Packaging time 0.1 hour per 100 pounds 3.1 hour per 100 pounds Coffee Bean has total practical capacity as noted in the table below, i.e. processing 1,760 purchase orders, 2,760 setups, etc. These are the levels of activity work that are sustainable. Practical Activity Capacity Purchasing 1, 760 Materials handling 2,760 Quality control 1, 560 Roasting 103, 606 Blending 39,600 Packaging 33, 600 Required: 1. Determine the activity rates based on practical capacity and the cost of idle capacity for each activity. (Round "Usage %" and "Practical Capactity Rate" to 2 decimal places. For percentages .1234 = 12.34%.) Practical Practical Idle Capacity Activity Budgeted Budgeted Cost Usage Based Capacity at Unused Activity Rate Current Usage % Capacity Rate Capacity Cost Spending Purchasing 1,338 $ 669,000 1,760 Materials handling 1,980 $ 792,000 2,760 Quality control 900 180,000 1,560 Roasting 97,900 $ 979,000 103,600 Blending 35,400 $ 354,000 39,600 Packaging 27,800 $ 278,000 33,600 $ 3,252,000 $ 0Coffee Bean Incorporated {CBI} processes and distributes highquality coffee. CBI buys coffee beans from around the world and roasts, blends, and packages them for resale. Currently, the rm offers 2 coffees to gourmet shops in 1pound bags. The major cost is direct materials; however, a substantial amount offactory overhead is incurred in the predominantly automated roasting and packing process. The company uses relatively little direct labor. CBI prices its coffee at full product cost, including allocated overhead, plus a markup of 30%. If its prices 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 $3,252,000, which has been allocated on the basis of each product's direct labor cost. The budgeted direct labor cost for the current year totals $600,000. The rm budgeted $6,000,000 for purchase and use of direct materials [mostly coffee beans]. The budgeted direct costs for 1pound bags are as follows: Mona Loa Malaysian Direct materials $ 4. 20 $ 3. 20 Direct labor 0 . 30 0 . 30 CBl's controller, Mona Clin, 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: Budgeted Driver Activity Cost Driver Consumption Budgeted Cost Purchasing Purchase orders 1,330 $ 559,000 Materials handling Setups 1,980 792,000 Qualityr control Batches 900 180,000 Roasting Roasting hours 9?,900 509,000 Blending Blending hours 35,400 354,000 Packaging Packaging hours 2?,300 273,903 Total factor).r overhead cost 5 332523303 Data regarding the current year's production for the Mona Loa and Malaysian lines follow. There is no beginning or ending direct materials inventory for either of these coffees. Hana Loa Malaysian Budgeted sales 100,000 pounds 2,000 pounds Batch size 10,000 pounds 500 pounds Setups 3 per batch 3 per batch Purchase order size 25,000 pounds 500 pounds Roasting time 1 hour per 100 pounds 1 hour per 100 pounds Blending time 0.5 hour per 100 pounds 0.5 hour per 100 pounds Packaging time 0.1 hour per 100 pounds 0.1 hour per 100 pounds Coffee Bean has total practical capacity as noted in the table below, i.e. processing 1,760 purchase orders, 2,760 setups, etc. These are the levels of activity work that are sustainable