Problem 7-20 Sheridan Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products Department Activity Pool Costs Binding Printing Product design General $251,075 824,605 192,975 630,800 Cost Driver Number of units Machine hours Change orders None Total overhead costs $1,899,455 Other information is as follows: Units Direct materials cost per unit Direct labor cost per unit Direct labor hours Machine hours Change orders Tablets Books 62,700 20,200 $3.13 $10.28 $3.81 $7.86 25,500 16,000 127,000 122,000 2,700 1,400 Calculate predetermined OH rate. (Round answer to 2 decimal places, e.g. 15.25.) Predetermined OH rate /DLH LINK TO TEXT LINK TO VIDEO Determine the unit product cost for tablets and books using the traditional costing system. (Round overhead rate and final answers to 2 decmial places, e.g. 15.25.) Tablets Books Unit product cost LINK TO TEXT LINK TO VIDEO Calculate ABC rates. (Round answers to 2 decimal places, e.g. 15.25.) ABC rates Binding Printing Product design /unit machine hour /change order LINK TO TEXT LINK TO VIDEO Determine the unit product cost for Tablets and Books using the activity-based costing system. (Round all rates and final answers to 2 decmial places, e.g. 15.25) Tablets Books Total unit cost LINK TO TEXT LINK TO VIDEO Show that General cost is the difference between the total overhead costs allocated to products under the traditional system and the total cost allocated to products under the activity-based costing system. (Round answers to 0 decmial places, e.g. 1,525.) Traditional ABC Difference Total allocated overhead $