$

Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Round per unit amounts to

the nearest whole cent.

Determine the total and per$-$unit cost assigned to each product under activity$-$based costing. Round the per unit amounts to the nearest whole cent.

Comment on the differences in the per$-$unit overhead allocated to each product using the single plantwide factory overhead rate method, the multiple production

department factory overhead rate method, and activity$-$based costing.

The plantwide overhead method allocates $

X of overhead to each product, while the multiple production department method allocates $

overhead to snowboards and $

$x$ to skis. Both the plantwide and multiple production department methods

$$ distort the allocation of overhead

because they

$$

account for how each product consumes overhead. In contrast, activity$-$based costing allocates $

of factory

overhead to snowboards and s

to skis. Activity$-$based costing

$$ accurately allocates factory overhead because

$$ for

$$ overhead. In

how each product consumes overhead. Snowboards consume

$$ direct labor hours in the Finishing Department, which has

pards consume

production control and materials handling overhead than do skis. This is because snowboards are made in

addition, snowboards consume

$$

lots, representing a wide $$ variety of styles. Thus, snowboards have

$$ activity costs than skis.