Question 6 (9 Marks) Maverick Company makes custom covers for air conditioning units for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools: Overhead Costs: Production Overhead Office Expense Total $100,000 $50.000 $150.000 Distribution of Resource Consumption: Activity Cost Pools Making Job Covers Support 40% 42% 12% 60% Production overhead Office expense Other 18% 28% Total 100% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization- sustaining costs. The amount of activity for the year is as follows: Activity Cost Pool Making Covers Job Support Other Annual Activity 2,500 yards 200 jobs Not applicable Required: a) Prepare the first stage allocation of overhead costs to the activity cost pools by replicating and filling in the table below. (6 marks) Making Covers Job Support Other Total Production Overhead Office Expense b) Compute the activity rates (i.e. cost per unit of activity) for the Making Covers and Job Support activity cost pools by replicating and filling in the table below. (3 marks) Making Covers Job Support Production Overhead Office Expense Total Show all applicable calculations below each table