Comparing a Traditional Costing System to an Activity$-$Based Costing System Marider Industries makes two types of windbreaker jackets: one for spring and one for winter. Marider uses a traditional costing system and is considering switching to an Activity$-$Based Costing system. Marider applies overhead on the basis of direct labor hours. Below is information about its production facility. $$SpringWinterSales$ $378,000$$ $288,000$Materials Cost$ $52,900$$ $26,100$Labor Cost$ $41,400$$ $24,300$Units Produced and Sold$4,2002,400$Total Direct Labor Hours$10,8803,240$ Total Estimated Overhead Cost$ $117,000$Total Estimated Direct Labor Hours$14,500$ Activity$-$Based Costing InformationActivityActivity DriverTotal Estimated CostSpring UsageWinter UsageTotalCuttingCutting Hours$ $21,0601,5807402,320$SewingSewing Hours$ $32,7609,3002,50011,800$InspectingNumber of Inpections$ $4,68020050250$PackingUnits Produced$ $11,7002,3009003,200$Machine SetupsNumber of Setups$ $17,55060150210$Material MovesNumber of Material Moves$ $29,2502090110$ Required: Calculate the Predetermined Overhead Rate. Use the Predetermined Overhead Rate to calculate total overhead applied to each jacket type. Calculate the Gross Profit per jacket type. Calculate the Activity Rates for the Activity$-$Based Costing system. Use the Activity Rates to calculate the total overhead applied to each jacket type. Calculate the Gross Profit per jacket type. Indicate whether the traditional costing system overcosted or undercosted the jackets. Note: Do not round intermediate calculations. Navigation: Use the$$Open Excel in New Tab$$button to launch this question. When finished in Excel, use the$$Save and Return to Assignment$$button in the lower right to return to Connect. Marider Industries makes two types of windbreaker jackets: one for spring and one for winter. Marider uses a traditional costing system and is considering switching to an Activity$-$Based Costing system. Marider applies overhead on the basis of direct labor hours. Below is information about its production facility.

Required:

$1.$ Calculate the Predetermined Overhead Rate.

$2.$ Use the Predetermined Overhead Rate to calculate total overhead applied to each jacket type.

$3.$ Calculate the Gross Profit per jacket type.

$4.$ Calculate the Activity Rates for the Activity$-$Based Costing system.

$5.$ Use the Activity Rates to calculate the total overhead applied to each jacket type.

$6.$ Calculate the Gross Profit per jacket type.

Note: Do not round intermediate calculations.

Gross Profit per unit

$7.$ Indicate whether the traditional costing system overcosted or undercosted the jackets.