Problem 3. (12 points) Hayward Industries manufactures dining chairs and tables. The following information is available: Machine setups Inspections Labor hours Dining Chairs Tables Total Cost 600 470 2,400 200 250 2,600 $48,000 $72,000 $120,000 Hayward is considering switching from one overhead rate based on labor hours to activity-based costing Perform the following analyses for these two components of overhea d: Compute the overhead rate per labor hour using a single overhead rate and total overhead costs assigned to each product. (Traditional method) a. b. Using activity-based costing, compute activity rates for machine setup costs and inspection costs