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. \begin{tabular}{l|rr|lr|} \hline & \multicolumn{2}{|c|}{ Spring } & \multicolumn{2}{|c|}{ Winter } \\ \hline Sales & $ & 378,000 & $ & 288,000 \\ Materials Cost & $ & 52,900 & $ & 26,100 \\ Labor Cost & $ & 41,400 & $ & 24,300 \\ Units Produced and Sold & & 4,200 & 2,400 \\ Total Direct Labor Hours & 10,880 & 3,240 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Total Estimated Overhead Cost & $ & 117,000 \\ \hline Total Estimated Direct Labor Hours & & 14,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Activity-Based Costing Information } \\ \hline Activity & Activity Driver & Total Estimated Cost & Spring Usage & Winter Usage & Total \\ \hline Cutting & Cutting Hours & 21,060 & 1,580 & 740 & 2,320 \\ \hline Sewing & Sewing Hours & 32,760 & 9,300 & 2,500 & 11,800 \\ \hline Inspecting & Number of Inpections & 4,680 & 200 & 50 & 250 \\ \hline Packing & Units Produced & 11,700 & 2,300 & 900 & 3,200 \\ \hline Machine Setups & Number of Setups & 17,550 & 60 & 150 & 210 \\ \hline Material Moves & Number of Material Moves & 29,250 & 20 & 90 & 110 \\ \hline \end{tabular} Required: 1. Calculate the Predetermined Overhead Rate. Required: 1. Calculate the Predetermined Overhead Rate. 2. Use the Predetermined Overhead Rate to calculate total overhead applied to each jacket type. 3. Calculate the Gross Profit per jacket type. 4. Calculate the Activity Rates for the Activity-Based Costing system. 5. Use the Activity Rates to calculate the total overhead applied to each jacket type. 6. Calculate the Gross Profit per jacket type. Traditional System \begin{tabular}{|c|c|c|c|} \hline Predetemined Overhead Rate & \$ & 8.07 & \\ \hline & Spring & & Winter \\ \hline \multicolumn{4}{|l|}{ Total Overhead Applied } \\ \hline \multicolumn{4}{|l|}{ Direct Materials cost per unit } \\ \hline \multicolumn{4}{|l|}{ Direct Labor cost per unit } \\ \hline Overhead cost per unit & & & r \\ \hline Total cost per unit & & & \\ \hline \end{tabular} Gross Profit per unit \begin{tabular}{|c|c|c|c|c|} \hline Activity & Cost & & \begin{tabular}{c} Activity Driver \\ Amount \end{tabular} & Rate \\ \hline Cutting & & 21,060 & 2,320 & 9.08 \\ \hline Sewing & & 32,760 & 11,800 & 2.78 \\ \hline Inspecting & r & 4,680 & 250 & 18.72 \\ \hline Packing & r & 11,700 & 3,200 & 3.66 \\ \hline Machine Setups & r & 17,550 & 210 & 83.57 \\ \hline \multirow[t]{3}{*}{ Material Moves } & r & 29,250 & 110 & 265.91 \\ \hline & & & & \\ \hline & Spring & & Winter & \\ \hline Cutting overhead cost & & & & \\ \hline Sewing overhead cost & & & & \\ \hline Inspecting overhead cost & r & & & \\ \hline Packing overhead cost & r & & & \\ \hline Machine Setups overhead cost & & & & \\ \hline Material Moves overhead cost & & & & \\ \hline Total Overhead Cost & & & T & \\ \hline & & & & \\ \hline Direct Materials cost per unit & T & & & \\ \hline Direct Labor cost per unit & & & r & \\ \hline Overhead cost per unit & T & & r & \\ \hline Total cost per unit & T & & T & \\ \hline & & & & \\ \hline Gross Profit per unit & 1 & & & \\ \hline \end{tabular} 7. Indicate whether the traditional costing system overcosted or undercosted the jackets. \begin{tabular}{|l|l|l|} \hline & Spring & Winter \\ \hline Volume & \\ \hline Cost & \\ \hline \end{tabular}