XYZ Company makes two products: Product A and Product B.XYZ Company presently allocates overhead to products using a rate based on direct labor-hours. Management decided to give ABC a try and identified the following activities, cost drivers, and costs for a typical year for each activity center. Use this information to compute the overhead rates for each cost driver. Cost driver Activity Recommended cost driver Costs units Production runs $ 60,000 100 Orders 70,000 200 Production setup Order processing Materials handling Equipment depreciation Pounds of materials used 30,000 5,000 and Machine-hours 70,000 10,000 maintenance 10,000 40 Quality management Packing and shipping Inspections Units shipped 30,000 3,000 Assume the following activities occurred in February of 2017: Product A Product B 2.000 1000 Units produced Direct materials costs $8,000 $5,500 Direct labor-hours (hours) 100 100 Orders 100 100 Production runs 50 50 Pounds of material 3000 2000 Machine-hours 5000 2000 20 20 Inspections Units shipped 2.000 1000 Direct labor costs are $15 per hour. Instructions: 1. Calculate the activity cost rates for each activity center). 2. Cost out the two products using an activity-based costing system