of CBI's coffees are very popular and sell in large volumes, while a few of the newer blends sell in very low volumes For the coming year, car's budget Includes estimated manufacturing overhead cost of $3,420,000 CBI assigns manufacturing overhead to products on the basis of direct labor-hours. The expected direct labor cost totals $570,000, which represents 57.000 hours of direct labor time The expected costs for direct materials and direct labor for one-pound bags of two of the company's coffee products appear below. Mona Losin Direct labor (0.025 hours per bon) Direct materials $ 4.90 5 0.25 $ 3.0 $ 0.25 care controller believes that the company's traditional costing system may be providing misleading cost information. To determine whether or not this is correct the controller has prepared an analysis of the year's expected manufacturing overhead costs, as shown in the following table Activity custol Activity reasure Purchasing Purchase orders Material handling umber of setups Quality control Number of batches Wasting Roasting hours blending Blending hours Packaging Packaging hours Tutal manufacturing overhead cast Expected Activity for the Year 1,780 orders 1,870 setups 70 batches 96,500 roasting hours 34,200 blending hours 2,380 packaging hours Expected cost for the Year $ 65,0 70.00 207,700 1.000.000 376,200 2.800 $3,420,000 Data regarding the expected production of Mona Loa and Malaysian coffee are presented below. There will be no raw materials inventory for esther of these coffees at the beginning of the year Expected sales Batch Setups Purchase order or Hosting time per 100 pounds Blending time per 100 pounds Ha Lo 135,000 pounds 15.000 pounds 4 per batch 27.900 pounds 1 roasting hours 0.5 blending hours Halyan 2,400 pounds 600 pounds 4 per batch 600 pounds roasting hours 0.5 blending hours Saved ---- Glending Blending hours Packaging Packaging hours Total manufacturing overhead cost 34,200 blanding hours 21,3 packaging bours 376,200 233.800 $3,420,000 Data regarding the expected production of Mona Loa and Malaysian coffee are presented below. There will be no raw materials Inventory for either of these coffees at the beginning of the year Hona Lou Malaysian Expected sales 135.000 pounds 2,400 pounds Batch site 19.000 pounds 600 pounds Setups 4 per batch per batch Purchase order site 27,000 pounds 60 pounds Hosting time per 100 pounds 1 roasting hours 1 roasting hours tending time per 100 pounds 0.5 blending hours 0,5 blending hours Packaging time per 100 pounds 0.1 packaging hours 0.1 packaging hours Required: 1 Using direct labor hours as the base for assigning manufacturing overhead cost to products, do the following a. Determine the predetermined overhead rate that will be used during the year b. Determine the unit product cost of one pound of the Mona Loa coffee and one pound of the Malaysian coffee. 2. Using activity-based costing as the basis for assigning manufacturing overhead cost to products, do the following: a. Determine the total amount of manufacturing overhead cost assigned to the Mona Loa coffee and to the Malaysian coffee for the year. b. Using the data developed in part (2a) above, compute the amount of manufacturing overhead cost per pound of the Mona Loa coffee and the Malaysian coffee c. Determine the unit product cost of one pound of the Mona Loa coffee and one pound of the Malaysian coffee Complete this question by entering your answers in the tabs below