For many years. Sinclair Graphic Design has provided design and digital printing services for indoor banners. The nylon banners, which come na standards are used for a variety of purposes, including trade shows, sporting events, and other promotional activities. Three years ago, the company introduced a second printing and production service for outdoor banners that has become increasingly popular. The outdoor barners are a more complex product than the Indoor banners, requiring weatherproof vinyl materials and a different printing process to improve the visibility of the b and graphics content. Moreover, outdoor barners are printed in smaller production runs because of less frequent order the setup of the printing equipment es longer and since higher durability is needed to withstand the elements, more quality Inspections are needed. Under the traditional costing approach, Overhead costs are assigned to the products on the basis of direct bour-hours Despite the introduction of the new outdoor banners profits have declined mars and labour for the two products foow. endly over the past three years Management is beginning to believe that the company's costing system may be affaut Unt costs for Our 2150 2050 Direct Drawbour 120 per hour Management i s that the commony w 1320.000 in overheads during the current year and that 22.000 indoor barners and 4.00 u rban wilt produod and sold Required 1. Compute the promised overhead resuming that the company continues to rely overheat products the base of c ouro Round your answer to places) Predominadvertendole per direct labour Tour are 2. Mancare s condensing A these ly manufacturing or c the remind e ordis forest al on Bonprimary has been one and the rscho enewound your answers to decimal prace mars 2. Management is considering using ABC to apply manufacturing overhead costs to products for extemalinancial 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 Total Estimated Total Overhead Costs $ 330,000 110.000 770.000 Outdoor Banners 1,100 Order processing orders received) Print setup Inumber of batches) Artwork and graphic design (labour hours) Quality control (number of inspections) Indoor Banners 1,100 1,760 15.400 15.400 20.000 110.000 Total overhead cost $1,320,000 Activity Center Order processing Peetup Graphic design Quality control Predetermined Overhead Rate loeronder persep per hour 3. Using the predetermined manufacturing overhead rates that you computed in 2) above, do the a. Determine the total amount of manufacturing overhead cost that would be applied to each product of each product ABC system. Aher these to have been computed determine the amount of overhead cost perust Overhead Aged Indoor Outdoor Banners Banners Activity Cout Poul Order processing Graphics design Quality control To overhead cost Numar olunted Decoupe 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 ca of each product Overhead Applied Indoor Outdoor Banners Banners Activity Cost Pool Order processing Print Graphics design Quality control Todo Number of units produced Overhead cost per unit o b. Comoute the unit product cost of each product. (Round your answers to 2 decima Outdoor