Problem 17-3B Applying activity-based costing Pl P3 Al A2 C3 Ryan Foods produces gourmet gift baskets that it distributes online as well as from its small retail store. The following details about overhead costs are taken from its records. Production Act direct labor Materials St00000 $200.000 As 4 00 000 Product design Quality inspectie 100.000 Cooking 150 000 120.000 Additional information on the drivers for its production activities follows. Wrapping 100.000 units 20.000 direct labor 3.000 design hours 20.000 direct labor Assembling Product design Quality spection Cooking Renta 1.000 batches 2. Compute the activity overhead rates using ABC. Combine the assembling and quality inspection activities into a single cost pool. 3. Determine the overhead costs to assign to the following jobs using ABC. H ay Basket 800 units Executive Basket 1,000 Number of units Direct later 2000 DLH 40 design hour 500 DLH 40 design hours Design hours 4. What is the overhead cost per unit for the Holiday Basket? What is the overhead cost per unit for the Executive Basket? Check (4) Holiday Basket, S14.25 per unit 5. If the company used a plantwide overhead rate based on direct labor hours, what is the overhead cost for each Holiday Basket unit? What would be the overhead cost for each Executive Basket unit if a single plantwide overhead rate were used? (5) Holiday Basket, S18.13 per unit 6. Compare the costs per unit computed in requirements 4 and 5 for each job. Which cost assignment method provides the most accurate cost? Explain