Worldwide Fashion Company (WFC) makes three types of designer shirts; small, medium, and large. It presently allocates overhead using an overhead allocation rate based on direct labor-hours. Its budgeted overhead costs for Year 2019 are $200,000. A group of company employees recommend that WFC switch to activity-based costing (ABC) and identified the following activities, activity drivers, budgeted overhead costs, and estimated quantity of activity driver for the Year 2019. Activity Cost Pool Setting up production......... Processing orders......... Handling materials............ Using machines................ Provide quality management. Packaging ..................... Total budgeted overhead Activity Drivers Number of production runs Number of orders Pounds of materials Machine-hours Number of inspections Units packaged Budgeted Overhead $24,000 40,000 16,000 48,000 40,000 32,000 $200,000 Total Activity 100 runs 200 orders 8,000 pounds 10,000 machine hours 40 inspections 20,000 units In addition management estimated 2,000 direct labor-hours for year 2019. The following actual activities occurred in September 2019. Medium 500 $2,500 120 Large 400 $2,000 110 Small Number of units Produced........ 1,000 Direct materials costs.............. $4,000 Direct labor-hours................ 100 Number of production runs... Number of orders..... Pounds of material................. 400 Machine-hours. 500 Number of inspections........... Units packaged. ...... 1,000 200 2 500 400 Direct labor cost for September is $20 per hour. Required: a. Compute the cost allocation rate for the Year 2019 using direct labor-hours as the cost allocation base (Plantwide rate). b. Compute the production costs of small, medium and large designer shirts for September using direct labor hours as the cost allocation base. Also, calculate the unit cost of a designer shirt. c. Compute the activity rate (cost allocation rate) for the Year 2019 for each activity driver recommended by the employees (Activity Based Costing). d. Compute the production costs of small, medium and large designer shirts for September using activity-based costing. Also, calculate the unit cost of a designer shirt (small, medium and large)