Tires Unlimited Corporation produces two types of tires, regular and snow tires. The company uses activity-based costing and has identified two activities and their budgeted costs:

Molding $72,000

Assembly $262,500

Molding is based on mixing hours and assembly is based on machine hours. Information regarding each product is as follows:

	Regular tire		Snow tire
Units Produced	5,000		2,000
Mixing Hours	625		275
Machine Hours	1,000		500

Required:

A. If ABC costing is used, calculate the activity rate for molding and assembly. Round your answer to

two decimal places.

B. If ABC costing is used, calculate how much total overhead is assigned to each type of tire.

C. Assume the company does not use ABC costing. Calculate the plantwide overhead rate, based on

total company machine hours. Round your answer to two decimal places.

D. Calculate the total overhead assigned to each type of tire using the plantwide overhead rate.