Product X2 50 Question 2 (6 Marks) The accountant of Toylands Manufacturing collected the following information: Activity Overhead costs Cost driver Product X1 Machining Dept. Setup $200,000 Number of setups 200 Machining 700,000 Machine hours 20,000 Packaging Dept. Assembly 300,000 Direct labor hours 40,000 Inspection 180,000 Number of 120 inspections 15,000 60,000 60 SHOW YOUR STEPS, then select the right answer: 1- If the department allocation method is used, what is the overhead rate for the Machining department with machine hours as the allocation base? (2 marks) a. $39.43 per machine hour. b. $13.71 per machine hour. c. $20 per machine hour. | d. $25.71 per machine hour. 2- When activity-based costing is used, what is product X2's share of the Packaging department overhead costs? (2 marks) a. $270,000. b. $240,000. c. $580,000. d. $380,000. 3- When activity-based costing is used, how much of the overhead cost is allocated to product X1? (2 marks) a. $580,000. b. $800,000. c. $950,000. d. $670,000