N Introduction: In this problem we want to allocate the cost of shared costs between 2 products: Cat Earrings and Dog Earrings. Like any OVERHEAD COST ALLOCATION, we are going to (1) calculate an applied overhead rate, and (2) multiply that rate by the actual cost driver to determing the amount of applied overhead, Allocate overhead between 2 products, CAT and DOG: you've done this before. The applied overhead calculation is based on (1) an applied overhead rate, and (2) the 1 actual cost driver. 2 Calculate the applied overhead rate FOR EACH OF THE ACTIVITY CENTERS described below.. Supervising production employees - cost per unit CAT 700 Estimated overhead costs for each Activity Center Designing new models Creating and testing prototypes Installing production run equipment Finish and packaging costs TOTAL Actual number of units produced Started and completed Cost $ 100,000.00 $ 95,000.00 Estimated overhead cost driver Cost Driver Number of models Number of prototypes Number of installations CAT DOG TOTAL 3 1 4 6 2 8 $ 150,000.00 12 1 13 $ 7,500.00 $ 78,000.00 Number of employees Square feet of building space 10 14 24 15,000 2,000 17,000 $ 430,500.00 Actual overhead cost driver DOG TOTAL Cost Driver CAT DOG TOTAL 800 1,500 Number of models 2 2 Number of prototypes