Please complete all or do not attempt at all.

Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company switch to an activity-based costing system and prepared the following cost estimates for year 2 for the recommended cost drivers. Recommended Cost Driver Number of orders Number of production runs Pounds of materials used Estimated Cost $ 47,250 153,000 308,000 Estimated Cost Driver Activity 225 orders 90 runs 110,000 pounds Activity Processing orders Setting up production Handling materials Machine depreciation and maintenance Performing quality control Packing Total estimated cost Machine-hours Number of inspections Number of units 220,000 65,000 122,500 $915,750 11,000 hours 50 inspections 490,000 units In addition, management estimated 7,100 direct labor-hours for year 2. Assume that the following cost driver volumes occurred in January, year 2. Institutional 58,000 $41,000 430 13 Number of units produced Direct materials costs Direct labor-hours Number of orders Numb of production runs Pounds of material Machine-hours Number of inspections Units shipped Standard 22,000 $26,000 500 7 3 7,000 160 Silver 9,000 $ 16,000 560 6 6 2,900 17,000 590 2 58,000 100 2 9,000 22,000 Actual labor costs were $15 per hour. Actual labor costs were $15 per hour. Required: a. (1) Compute a predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the consultant. (2) Compute a predetermined rate for year 2 using direct labor-hours as the allocation base. b. Compute the production costs for each product for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement a(2). c. Compute the production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Reqc Compute a predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the consultant. (Round your answers to 2 decimal places.) Rate per order per run Activity Processing orders Setting up production Handling materials Using machines Performing quality control Packing per pound per machine hour per inspection per unit Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Reqc Compute a predetermined rate for year 2 using direct labor-hours as the allocation base. (Round your answer to 2 decimal places.) Predetermined rate per direct labor-hour Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req c Compute the production costs for each product for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement a(2). (Do not round intermediate calculations.) Account Silver Total Institutional Standard $ 41,000 $ 26,000 Direct materials $ 16,000 $ 83,000 Direct labor Indirect costs Total cost Complete this question by entering your answers in the tabs below. Req A1 Req A2 Reg B Reqc Compute the production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) (Do not round intermediate calculations.) Show less A Account Institutional Standard Silver Total Direct materials $ 41,000 $ 26,000 $ 16,000 $ 83,000 Direct labor Indirect costs Processing orders Setting up production Handling materials Using machines Performing quality control Packing Total cost