2. Management is considering using ABC to apply manufacturing overhead costs to products for external financial reports. Some preliminary work has been done, and the data that have been collected are displayed below. Using these data, calculate the predetermined overhead rate for each activity cost pool identified below. (Round your answers to 2 decimal places.) Activity Measure Order processing (orders received) Print setup (number of batches) Artwork and graphic design (labour-hours) Quality control (number of inspections) Estimated Total Overhead Costs $ 150,000 50,000 350,000 50,000 Indoor Banners 500 800 7,000 400 Outdoor Banners 500 200 7,000 400 Total 1,000 1,000 14,000 800 Total overhead cost $ 600,000 Predetermined Overhead Rate per order Activity Center Order processing Print setup Graphic design Quality control per setup per hour per inspection 3. Using the predetermined manufacturing overhead rates that you computed in (2) above, do the following: a. Determine the total amount of manufacturing overhead cost that would be applied to each product using the ABC system. After these totals have been computed, determine the amount of overhead cost per unit of each product. Overhead Applied Indoor Outdoor Banners Banners Activity Cost Pool Order processing Print set-up Graphics design Quality control Total overhead cost Number of units produced Overhead cost per unit b. Compute the unit product cost of each product. (Round your answers to 2 decimal places.) Indoor Outdoor Unit product cost 2. Management is considering using ABC to apply manufacturing overhead costs to products for external financial reports. Some preliminary work has been done, and the data that have been collected are displayed below. Using these data, calculate the predetermined overhead rate for each activity cost pool identified below. (Round your answers to 2 decimal places.) Activity Measure Order processing (orders received) Print setup (number of batches) Artwork and graphic design (labour-hours) Quality control (number of inspections) Estimated Total Overhead Costs $ 150,000 50,000 350,000 50,000 Indoor Banners 500 800 7,000 400 Outdoor Banners 500 200 7,000 400 Total 1,000 1,000 14,000 800 Total overhead cost $ 600,000 Predetermined Overhead Rate per order Activity Center Order processing Print setup Graphic design Quality control per setup per hour per inspection 3. Using the predetermined manufacturing overhead rates that you computed in (2) above, do the following: a. Determine the total amount of manufacturing overhead cost that would be applied to each product using the ABC system. After these totals have been computed, determine the amount of overhead cost per unit of each product. Overhead Applied Indoor Outdoor Banners Banners Activity Cost Pool Order processing Print set-up Graphics design Quality control Total overhead cost Number of units produced Overhead cost per unit b. Compute the unit product cost of each product. (Round your answers to 2 decimal places.) Indoor Outdoor Unit product cost