Mastery Problem Activity-Based costing WoolCorp WooCorp bure shops wool from farmers. The company began operations in January of this year, and it making decisions on product offerings, prieing, and vendors. The company is also examining its method of signing overhead to product youve just been his production manager at WooCorp Currently WooCorp makes two product() wear wool te bestuffing or insulation and (2) wool yarn for use in the textile industry The company would you to evaluate to costing methods for its raw wool and wool yarn Single Plantwide Rate WooCorp is currently using the antifactory rate method, which uses a predetermined overhead rate based on an estimated alocations such as rector hours of machine. The rate is computed as follows: Single Patwie actory Overhead tate Total Budgeted Factory Overhead) (Total Bupated Mantwide Alocation date) WooCorp has been using combing machine hours as its location base The company would like to consider activity and cost. In order to understand their current system better, you valuate WooCorp's current method of counting for row wod and wool yarnThe production that complied the following information for you on the production of 500 pounds of other row wool or wool yarn Budgeted Factory Factory Overhead Type Overhead Sorting $25.600 Cleaning 38,400 Combing 1.400 Raw Wool Wool Yarn Hours of combing machine use required 70 30 in the following table, se combing machine hours as the location base for assigning overhead costs to each product. When required, round your answers to the nearest dollar. Single Pantwide Factory Overhead Rates per coming hour Check My Workmore Check My Woncerning Emals Save and Submit Assignment for Grade Chapter 18 Mastery (Mastery) In the following table, use combing machine hours as the allocation base for signing overhead costs to each product. When required, round your answers to the nearest dollar Single Pantwide Factory Overhead Rate: per combing hour Raw Wool Wool Yarn Allocated factory overhead cost Activity-Based Costing In order to compare Wool Corp's current method with activity-based costing you interview the production staff and compile the following information, which meates to the costs for raw wool and woolyam Type of Cost Activity Base Total Cost Sorting Hours of sorting $25,600 Cleaning Units of cleaning machine power 38,400 Combing Hours of combing machine se 1.400 Hours of sorting required Unuts of cleaning machine power required Hours of combing machine se required Raw Wool Wool Yarn 300 3,200 1,920 4.480 70 30 in the following table, compute and enter the activity rate for each of the three activities. If required, round your answers to the nearest cent. Activity Activity Rate Sorting per sorting hour Cleaning per unit of deaning machine power Combing per hour of combing machine use In the following table, allocate the costs of sorting deaning and coming based on the rates of activity consumed by each product's process. When required, round your answers to the nearest dollar Check My Workmore Check My Working Emai intructor Save and Eat Submit Assignmer Raw Wool Wool Yarn 800 Hours of sorting required Units of cleaning machine power required Hours of combing machine use required 1.920 70 3,200 4,480 30 In the following table, compute and enter the activity rate for each of the three activities. If required, round your answers to the nearest cent. Activity Activity Rate Sorting per sorting hour Cleaning per unit of deaning machine power Combing per hour of combing machine se in the following table, locate the costs of sorting, cleaning, and combing based on the rate of activity consumed by each products proces. When required, round your answer to the store della Raw Wool Wool Yarn Sorting cost Cleaning cost Combing cost Total cost Final Question After reviewing your work on the Single Plantwide Rate and Activity Based Costing panels, which of the costing method would you recommend to Woo.com, and why