SIP Inc. (SIP) is plastic injection molding company specializing in front-end grilles. Bilchew Numbers wants to look at using an activity-based costing system. For 2021, he estimated overhead costs of $12,560,000 to be allocated using an activity-based costing system (see the table below). Bilchew also estimated that direct labour will be paid at the rate of $15 per hour. (I was informed to repost this in order to receive the solution for all sub parts: I would like to have the solution for part 4, I would appreciate the working process (calculation))

1. SIP Inc. (SIP) is plastic injection molding company specializing in front-end grilles. Bilchew Numbers wants to look at using an activity-based costing system. For 2021, he estimated overhead costs of $12,560,000 to be allocated using an activity-based costing system (see the table below). Bilchew also estimated that direct labour will be paid at the rate of $15 per hour. Activity Cost Pool Estimated Cost Cost Driver (allocation base) Total Quantity of Allocation Base Indirect materials $ 1,450,000 Direct materials $6,590,910 Indirect labour and 2,000,000 Direct labour 100,000 hours supervision Utilities 3,598,000 Power 20,000 kilowatt-hours (kWh) consumption Inspection 4,200,000 Inspection 15,000 inspections Depreciation 1,312,000 Machine usage 160,000 machine-hours $12,560,000 During January 2021, Bilchew worked on two jobs, which consumed the following resources: Job 2021-A1 Job 2021-A2 Direct materials cost $ 6,500 $ 22,000 Direct labour cost $42,000 $165,000 Machine-hours 1,800 7,000 Number of inspections 200 200 Power consumed (kWh) 800 800 Number of units 20 100 At the end of the year, SIP recorded the consumption of resources as follows: direct materials, $6,660,800; direct labour, 101,540 hours; machine-hours, 158,700; power consumption, 20,370 kilowatt-hours; number of inspections, 14,780. The company also recorded actual overhead amounting to $12,538,250. Required: 1. Calculate the activity rate for each activity cost pool. 2. Calculate the cost per unit using activity-based costing. 3. Determine the total manufacturing overhead applied to jobs during the year. 4. Calculate the under- or overapplied overhead for the year and show how you will dispose of this amount at the end of the year