just help with D

units 100 runs Problem B Sunshield Company makes three types of sunglasses: Nerds, Stars, and Fashions Sunshield presently allocates overhead to products using a rate based on direct labor-hours. A consultant recommended that Sunshield switch to activity-based costing. Management decided to give ABC a try and identified the following activities, cost drivers, and costs for a typical year for each activity center. Use this information to compute the overhead rates for each cost driver. Activity Recommended Costs Est. Cost driver Cost Driver Production setup Production runs $30,000 Order processing Orders $50,000 200 orders Materials handling Pounds of $20,000 8,000 lbs. materials used Equipment Machine-hours $60,000 10,000 mach-hrs depreciation and maintenance Quality management Inspections $50,000 40 inspections Packing and shipping Units shipped $40.000 20,000 units Total Overhead $250,000 In addition, there are 2,500 direct labor-hours in a typical year and direct labor costs are $ 15 per hour. Stars 500 $2.500 100 Fashions 400 $2,000 89 Assume the following activities occurred in February: Nerds Units produced 1,000 Direct materials costs $4.000 Direct labor hours 100 1 Orders Production Runs Pounds of materials 400 Machine-hours 500 Inspections Units Shipped 1,000 200 300 300 500 300 a. Compute an overhead allocation rate (1) for each of the cost drivers recommended by the consultant and (2) for direct labor. b. Management wants to compare the product costs using ABC and the traditional method for the month of February. Compute the production costs for each product for February using direct labor-hours as the allocation base. (Note: Production costs are direct materials, direct labor, and overhead.) c. To derive product costs under ABC, compute the production costs for each product for February using the cost drivers recommended by the consultant. d. Management has seen your numbers and wants to know how you account for the discrepancy between the product costs using direct labor-hours as the allocation base and using activity-based costing. Write a brief response to management