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College Supply Company (CSC) makes three types of drinking glosses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company employees recommended that CSC switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for Year 5 for each activity center Activity Setting up production Processing orders Handling materials Using machines Providing quality management Packing and shipping Recommended Cost Driver Number of production runs Number of orders Pounds of materials Machine-hours Number of inspections Units shipped Estimated Cost $ 30,000 43,200 18,000 66,000 56,000 44,000 $257,200 Estimated cost Driver Unit 100 runs 180 orders 9,000 pounds 11,000 hours 40 inspections 22,000 units In addition, management estimated 2,000 direct labor hours for year 5. Assume that the following cost driver volumes occurred in February, year 5. Tall 300 $2,500 90 Huber of units produced Direct materials costs Direct labor-hours Number of orders Number of production runs Pounds of material Hachine-hours Number of inspections Units shipped Short 1,000 35,000 110 9 3 300 500 12 1.000 Medium 600 $2,0 120 9 3 300 300 2 600 8 200 300 2 200 Direct labor costs were $18 per hour. Required: a. Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute a predetermined rate using direct labor hours as the allocation base. b. Compute the production costs for each product for February using direct labor hours as the allocation base and the predetermined rate computed in requirement a c. Compute the production costs for each product for February using the cost divers recommended by the employees and the predetermined rates computed in requiremento (Note: Do not assume that total overhead applied to products in February will be the same for activity based costing as it was for the labor hour based allocation.) Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required Required Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also computea predetermined rate using direct labor-hours as the allocation base (Round your answers to 2 dedmal places) Activity Setting up production Processing onders Handling materials Using machines $ $ S $ Allocation Rate 30000 per run 240.00 por order 200 6.00 per hour perib rate computed in requirement a c. Compute the production costs for each product for February using the cost drivers recommended by the employees and the predetermined rates computed in requiremento(Note: Do not assume that total overhead applied to products in February will be the same for activity-based costing as it was for the labor-hour-based allocation.) Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute a predetermined rate using direct labor hours as the allocation base. (Round your answers to 2 decimal places.) per lb Activity Setting up production Processing orders Handling materials Using machines Performing quality management Packing & shipping Direct labor hour rate Allocation Rate $ 300.00 por run 5 240.00 per order $ 200 $ 6.00 per hour $ 1,400.00 per insp $ 200 per unit $ 18.00 per hour KRA Required B rate computed In requirement a c. Compute the production costs for each product for February using the cost drivers recommended by the employees and the predetermined rates computed In requirement o. (Note: Do not assume that total overhead applied to products in February will be same for activity-based costing as it was for the labor hour-based allocation.) Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the production costs for each product for February using direct labor hours as the allocation base and the predetermined rate computed in requirement a. (Do not round intermediate calculations.) Short 5,000 Medium 2,000 Tall 2,500 $ $ Direct materials Direct labor Overhead Total costs 5.000 2,000 S 2,500 Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required Compute the production costs for each product for February using the cost drivers recommended by the employees and the predetermined rates computed In requirement a. (Note: Do not assume that total overhead applied to products in February will be the same for activity-based costing as it was for the labor-hour-based allocation.) (Do not round Intermediate calculations.) Show less Short 5,000 Medium $ 2,000 Tall 2,500 IS IS Direct materials Direct labor Setting up production Processing orders Handling materials Using machines Performing quality management Shipping Total costs IS 5,000 $ 2,000 S 2.500