*Materials are ordered and received each time a batch is produced REQUIRED: 1. Classify activities as unit-level, batch-level, product-level, and facility-level. 2. Reduce the rates by grouping all activities with identical consumption ratios into homogeneous cost pools. Select an activity driver for each cost pool, and compute a pool rate. 3. Using the pool rates calculated in Requirement 2, assign all overhead costs to the two products, and compute the overhead cost per unit for each. 2. Rue Company makes several types of graphic tablets. One factory specializes in two types, the Doodler and the Sketcher. The Doodler has been a bread-and-butter product for a number of years, while Sketcher is relatively new and struggling to gain acceptance. Data on the two machines follow: DOODLER SKETCHER Materials cost P20 P45 Assembly time 10 hours 20 hours Expected volume for coming year 10,000 500 Assembly labor costs is P20 per hour and overhead costs are budgeted at P660,000 for the coming year. REQUIRED:" 1. Determine the total number of labor hours the company will work in the coming year. 2. Determine the overhead rate per labor hour. 3. Determine the total cost of each tablet 4. The Doodler is now selling at P320, while the Sketcher now fetches P950. Determine the profit margin for each tablet. 3. (Continuation of Problem No. 2) The managers of Rue Company are concerned about the costs you calculated in Problem 2. The controller develops the following information. DOODLER SKETCHER Number of setups, annually 100 250 Testing time, annually 2,000 hours 2,750 hours Thus, the company performs one setup for every 100 units of Doodler (100/10,000) and one setup for every two units of Sketcher (250/500). Similarly, the company spends 0.20 hours (2,000/10,000) testing a Doodler and 5.5 hours (2,750/500) testing a Sketcher. The controller also determined that, of the total overhead of P660,000, about P140,000 related to setups and P190,000 to testing. The remaining P330,000 related to assembly labor. REQUIRED: 1. Determine the overhead rates for each activity: setups, testing, and assembly. Determine the cost of each tablet using the new information. WN! Determine the profit margin for each tablet using the new information. 4. Comment on the differences between your results here and those in