1) calculate the overhead rate using activity-based costing. The overhead rate for each activity is as follows:

2) using the data in requirement 2 and overhead rates computed in requirment 1, calculate the oferhead to be allocated to the bags under the activity- based costing method.

och Problem 1 Traditional vs. ABC-16 total points - 8 points each The following cost information is available for David, Ltd.: Activity Purchasing Receiving Machine setups Quality control Allocation Base Purchase orders Shipments received Setups Inspections Volume of Activity 25,000 20,000 5,000 30,000 Overhead Cost $200,000 100,000 275,000 210,000 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: | 18 Data for requirement 2: One particular batch of 40 luxury handbags had the following specifications: Direct labor hours dos Purchase orders Shipments received Setups Ho Inspections - Og Stodo | 10 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. a lcool slimnie nivel no t aidon