Marider Industries makes two types of windbreaker jackets: one for spring and one for winter. Marider uses a traditional costing system

and is considering switching to an Activity$-$Based Costing system. Marider applies overhead on the basis of direct labor hours. Below is

information about its production facility.

Required:

Calculate the Predetermined Overhead Rate.

Use the Predetermined Overhead Rate to calculate total overhead applied to each jacket type.

Calculate the Gross Profit per jacket type.

Calculate the Activity Rates for the Activity$-$Based Costing system.

Use the Activity Rates to calculate the total overhead applied to each jacket type.

Calculate the Gross Profit per jacket type.

Indicate whether the traditional costing system overcosted or undercosted the jackets.