QUESTION EIGHT (OVERHEAD ANALYSIS ABC & ABSORPTION COSTING) The accountant of bicyclelands Manufacturing collected the following information: Activity Overhead costs Cost driver Product X1 Product X2 Machining Dept: Setup $200,000 Number of setups 200 50 Machining 700,000 Machine hours 20,000 15,000 Packaging Dept: Assembly 300,000 Direct labor hours 40,000 60,000 Inspection 180,000 Number of inspections 120 60 Required: i) If bicyclelands manufacturing uses a plant wide rate based on direct labor hours to allocate overhead costs, calculate product Xi's share of overhead. ii) If the department allocation method is used, determine the overhead rate for the Machining department with machine hours as the allocation base? iii) When activity-based costing is used, compute product X2's share of the Packaging department overhead costs. iv) When activity-based costing is used, calculate how much of the overhead cost is allocated to product X1. v) Distinguish the cost structures of a manufacturing firm with low operating leverage and one with high operating leverage. [TOTAL: 25 Marks)