Kentucky manufactures two sizes of meals, regular and jumbo. The following information applies to their expectations for the planning period 2022:

Cost Pool Overhead Costs Activity-cost driver

Materials handling $ 300,000 150,000 orders

Machine maintenance $45,000 9,000 maintenance hours

Setups $18,000 3,000 setups

Inspections $7,000 2,000 inspections

Total support costs $370,000

Production Estimates for 2022

Products	Production Units	Direct Labor-hours	Materials handling	Machine maintenance	Setups	Inspections
Regular	20,000 units	62500 Hrs.	80,000 orders	5,000 MH	2000	1300
Jumbo	10,000 units	30,000 Hrs.	70,000 orders	4,000 MH	1000	700
Total		92500	150,000	9,000	3,000	2,000

Kentucky uses an ABC system and assigns overhead costs based on the overhead activity information provided above.

Required:

1. Compute the cost rate for each driver using ABC allocation method.

2. Compute traditional rate using direct labor hours as a base.

3. Use traditional cost rate to compute the overhead costs of Regular and Jumbo production units.

4. Use ABC cost rates to compute the overhead costs of Regular and Jumbo production units.