The exhibits show the production and financial data of each product grade for Forest Hill Paper Company as well as the overhead structure.

Exhibit 1 Selected product grades with production and financial data What is the cost for Forest Hill to conduct a grade change? What is the cost for Forest Hill to slit a reel of paperboard? As shown in Exhibit 1, only products A and C are routinely slit. For purposes of your analysis, assume the slitting equipment must be set up and adjusted between each reel slit. Calculate the new volume-based overhead rate after removing grade change and slitting costs. Determine the activity-based costs for grades A-D