1. Determine the activity rates for (a) equipment setup and (b) other overhead.

2. Determine the total overhead for the Chips and Burger using activity-based costing.

3. Describe how the total overhead attributed to Burger using the Activity Based Costing system (i.e., using the activity rates) differs from the total overhead attributed to Burger under the plant-wide rate.

4. Why or why not, are the overhead costs for burgers and chips over or under allocated, according to the Activity Based Costing system?

5. What impact should this recently discovered knowledge about an over or under allocation of overhead costs have on management's choice regarding one or both goods.

\\begin{tabular}{|l|r|r|r|} \\hline & Burger & Chips & Total \\\\ \\hline \\( \\begin{array}{l}\\text { Overhead } \\\\ \\text { costs }\\end{array} \\) & \\( \\$ 250,000 \\) & \\( \\$ 900,000 \\) & \\( \\$ 1,150,000 \\) \\\\ \\hline \\end{tabular} \\begin{tabular}{|l|r|r|} \\hline Cost Pools & Expected costs & Cost driver \\\\ \\hline Equipment Setup & \\( \\$ 270000 \\) & set-up hours \\\\ \\hline Other overhead & \\( \\$ 880000 \\) & oven hours \\\\ \\hline \\( \\begin{array}{l}\\text { Total expected overhead } \\\\ \\text { costs }\\end{array} \\) & \\( \\$ 1,150,000 \\) & \\\\ \\hline \\end{tabular} \\begin{tabular}{|l|r|r|r|} \\hline & Burger & Chips & Total \\\\ \\hline \\( \\begin{array}{l}\\text { Units } \\\\ \\text { produced }\\end{array} \\) & 6,000 & 26,000 & 32,000 \\\\ \\hline Set-up hours & 5,000 & 2,000 & 7,000 \\\\ \\hline Oven hours & 2,000 & 7,000 & 9,000 \\\\ \\hline \\end{tabular}