TEAM NAMES: I I Instructions: Refer to detailed instructions on the previous tab. Complete the problems below. BOLD BLACK numbers come directly from the case and cannot be changed. Cells with thick borders around them contain formulas which help to solve the problem. Please do not delete the formulas. You will find it useful to input your own formulas to solve the problems (instead of using a calculator and inputting only solutions). Exhibit 1 Activity Purchasing $80,000 Purchase Orders 909 $88.01 per order Material Handling $95,000 Set L'ps 1846 $51.46 per set up Blending $122,000 Blender Hours 1000 $122.00 per blender hour Freezing $175,000 Freezer Hours 1936 Packaging $110,000 Packing Machine Hours 1100 Qualitv Control $18,000 Batches $90.39 per freezer hour $100.00 per packaging hour $62.94 er batch Exhibit 2 Break Out General Information: DirectMaterial $2.00 per gallon $1.80 per gallon Direct Labor $1.20 per gallon $1.20 per gallon Budgeted Production 2,000 gallons 100,000 gallons PDOHTi-adinmal cum\": $2.00 per DL$ $2.00 per DL$ Activity Based Costing Information: Number of Batches 20 batches 40 batches Set Ups 3 per batch 3 per batch Number of Purchas Orders 40 purchase orders 100 purchase orders Blender Time 0.006 hours per gallon 0.003 hours per gallon Freezer Time 0.010 hours per gallon 0.010 hours per gallon Packa- in Machine Time 0.003 hours er allon 0.002 hours er 'allon Required 1: Traditional Costing Polynesian Vanilla Direct Materials $ 4.000.00 $ 180,000.00 Direct Labor Applied OHTRAD Total Cost $ 4,000.00 $ 180,000.00 Number of Gallons Total Cost/Gallon #DIV/O! /gallon #DIV/O! gallon Required 2. Activity Based Costing Method: Compute Actual Use of Each Cost Driver Polynesian Vanilla Number of Purchase Orders Number of Purchase Orders Hint: PDOH=$OH per Setup. So, to get Applied OH in $ we need to multiply by the $OH 60.0 Number of Set Ups Number of Set Ups total number of setups. But we aren't given that, we are given number of setups per Number of Setup batch. So, then we need to multiply by number of batches to arrive back at $OH. Blender Hours Used Blender Hours Used Freezer Hours Used Freezer Hours Used Packing Machine Hours Used Packing Machine Hours Used Number of Batches Number of BatchesNumber of Batches Number of Batches ABC Costing Polynesian Vanilla Direct Materials Direct Labor $OH Hint: PDOH=$OH per Purchase Order. So, to get Applied OH in $ we Purchase Order X #Purchase Orders = $Applied OH Applied OHpurchasing $ need to multiply by the number of purchase orders. Applied OHMaterial Handling Applied OHBlending Applied OHFreezing Applied OHpackaging Applied OH Quality Control Total Cost $ $ Number of Gallons Total Cost/Gallon #DIV/O! gallon #DIV/O! gallon Required 3. Should Claire Switch from the plantwide allocation method to activity-based costing? Why or why not?