Question 3: Activity-Based Costing (35 Marks) Super Shoe company makes two types of shoes-the Runner and the Comforter. Data concerning these two product lines appear below: Runner Comforter Selling price per unit $200.00 $100.00 Direct materials per unit $80.00 $60.00 Direct labour per unit $30.00 $20.00 Direct labour-hours per unit 2.0 DLHs 1.0 DLHS Estimated annual production and sales 40,000 units 160,000 units Estimated direct labour hours ? ? The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead for the upcoming year appear below: Activities and Activity Measures Estimated Overhead Cost Supporting direct labour (direct labour-hours) $810,000 Batch setups (setups) 500,000 Product sustaining (number of products) 670,000 Other (organization-sustaining costs) 120,000 Estimated manufacturing overhead cost $2,100,000 Question 3.1 Calculate the predetermined overhead rate Super Shoe company will use based on the direct labour hours. (3 marks) Your Answer: Predetermined Overhead Rate (POHR) Show your workings here (expand the space as required): Question 3.2 Calculate the product margins for the Runner and the Comfort products under the company's traditional costing system. (6 marks) #our Answer (add extra rows/columns to the template if required): Runner Comfort Total Show your workings here (expand the space as required)