Problem 5.56 Activity-Bosed Costing (LO 5-1, 5-2, 5-4, 5-5, 5-7) in the predornirantly automated roasting and packing process no convary uses relatively little direct babor Some of the coffees are very popular and sed in large volumes, while a few ot the newer bienos thave very low volumes wGCC prices higher than macket, idjustments are made The company competes primarily on the quality of ifs products, but customers are price conscious as wel direct labar cost. The budgeted direct labor cost for 20 totals $1,820,752 fosed on the sales bodget and faw-materia budoet. purchases and use of raw materials (mosey cotfee beans) will total 56,900,000 The expected prime costs for one-pound bags of two of the company products are as foliows Required: 1. Using WGC C's current product-costing system a. Determine the company's predetermined overiead rate using direct fabor cost as the singhte cost driver. b. Determine the full product costs and selling prices of one pound of Konir coffee and one pound of Maloyslan coffee. 2. Develop a new product cost, using an activity based costing approach, for coe pound or Kona collee and one pound of Malaysiar coffec Complete this question by entering your answers in the tabs below. Develop a her product cost, using ah activify-basud costing approsch, for one pound af Kone colfea and one pound of WCCC i controber believes the traditionai peoduct-costing system may be provideg miskeading cost information She has developed an analysis of the 20x budgeted manutacturing-overthead costs shown in the following chart Data regarding the 201 production of Kons and Malayan cotfee are shown in the following table. There with be no raw instethal inventory for eitser of these collees at the beginaing of the your