ActivityCost DriverTotal Cost1.Materials handlingNumber of requisitionsP30,0002.Machine setupsNumber of setups24,0003.Quality inspectionsNumber of inspections27,000

The cost drive volume of eachproduct was as follows:

Cost driverProduct TTProduct SSNumber of requisitions400600Number of setups150300Number of inspections200400

Required:

1. Determine the overhead rate for each activity.
2. Allocate the manufacturing overhead costs to the two products using ABC.