. Verizon LTE 6:40 PM C4 14%D- Click Here Click Here hour. Required: 1. Calculate the overhead rate using activity-based costing. The overhead rate for each activity is as follows: Data for requirement 2: One particular batch of 40 luxury handbags had the following specifications: Direct labor hours Purchase orders Shipments received Inspections 2. Using the data in requirement 2 and overhead rates computed in requirement 1, calculate the overhead to be allocated to the bags under the activity-based costing method. . Verizon LTE 6:42 PM TO 17%D4 X Click Here Click Here Part II Problems - 60 total points Problem 1 Traditional vs. ABC -8 total points - I point each The following cost information is available for David, Ltd.: Activity Allocation Base Volume of Activity Overhead Cost Purchasing Purchase orders 25.000 $200.000 Receiving Shipments received 20,000 100.000 Machine setups Setups 5,000 275.000 Quality control Inspections 30.000 210,000 Direct materials are $15 per unit for luxury handbags and $10 per unit for deluxe handbags. There were 12,000 direct labor hours. Each of which was charged to inventory at $18 per hour. Required: 1. Calculate the overhead rate using activity-based costing. The overhead rate for each activity is as follows: Data for requirement 2: One particular batch of 40 luxury handbags had the following specifications: Direct labor hours Purchase orders Shipments received Seps Inspections