QUESTION 1 Smith Phine, Inc. produces running shoes (1) Standard and (2) ultra During October, the company experienced above normal production Specially 800 pars of standard shoes were produced, and 200 pairs of ultra shoes were produced. The overhead cost is estimated to be $134250. A breakdown of the overhead costs reveals the following activities ACTIMTIES COST DRIVERS TOTAL COST 1. Materials handling Number of requisitions $ 52,500 2. Equipment setup Number of setups 41.250 3. Inspections Number of inspections 40.500 5.134.250 The cost analysts determined the following cost driver volumes for each product as follows: COST ORMERS STANDARD ULTRA TOTAL Number of requisitions 1.500 2,100 3.600 Number of setups 900 1.500 2.400 Number of inspections 750 1500 2.250 INSTRUCTIONS 1 Compute the overhead rate for each activity 2 Determine the amount of overhead costs that should be assigned to each product 3. Assume instead of ADC, the vadonal method of overhetssment sed machine hours to assgn overhead costs Total machine hours are approximately 1 200 hours where the production of standard shoes used 800 machine hours and the production of ultrashoes used 400 machine hours. Determine the amount of overhead cost that would be assigned to each of the two products 4. Compare and evaluate your answer in 2 with your answer in 3. is one answer a more assignment and/or a more accurate assignment than the other? Explain in detail