The question is attached below.

Question 2 (25 marks) Glass Mountain Vases is reviewing two vase product lines, Tall & Short. For these two products they allocate the costs using one single overhead rate based on estimated machine hours. GMV doesn't believe the tall & short vases are being costed accurately and therefore decides to investigate switching to an Activity Based Costing System. The controller performs significant analysis and determines the following costs activities and cost drivers: Activity Activity Driver Estimated Activity Cost Volume of Activity Measure Purchasing Quantity bought (kg) $225,00 100,000 kg Machine setups Number of setups 450,000 200 setups Oven Firing Oven hours 600,000 25,000 hours The following data is used for GMV for November Short Tall Purchasing 2,000 kg 4,000 kg Materials Machine setups 22 setups 5 setups Oven Firing 1,000 hours 1,000 hours 1. Calculate the budgeted indirect cost rate for the three cost pools 2. Calculate the manufacturing overhead cost for each product 3. Assuming the following additional costs, what is the total cost of the two products Short Tall Direct Maters $50 $65 Direct Labour $75 $33