2. Now assume that Amanda has hired you, a consultant, to help her to adopt an activity- based costing system. You have gathered activity-based information For your analysis, calculate each of the following: A. Calculate the capacity cost driver rates for each of the overhead resources. B. Determine the total monthly overhead resource costs allocated to each of the four production departments. Note: In your intermediary calculations, make sure to show the costs allocated from each resource to each production department. Table 6: Activity-Based Costing Information Panel A: Monthly Overhead Resource Costs and Cost Driver Information Overhead Resource Cost Production Supplies Facility Costs Purchase Support Costs Customer Order Support Costs Master Chocolatier Salary VP of Operations Salary Total Budgeted Overhead Costs Cost ($) Level Cost Driver 3,600 Facility Square Feet Cost Driver Volume 3,000 6,300 Facility Square Feet 3,000 2,000 Batch # Purchase Orders 80 4,000 Customer 3,900 Batch 5,000 Customer #Customer Orders # Set Ups 500 100 #Customer Orders 500 $24,800 Panel B: Monthly Production Department Resource Usage # Purchase Orders Pouring 60 Inspection Foiling 0 Labelling Total 4 16 80 # Customer Orders 500 500 # Set Ups Square Feet 100 750 100 750 750 750 3,000 Panel C: Production Department Hours Per Average 175-Bar Batch Size Product 1: Product 2: Product 3: Product 4: 1.25 oz. Organic 1.25 oz. Non-Organic 3.0 oz. Non-Organic 3.25 oz. Organic Pouring Inspection 2 0.5 1 0.5 1 2 0.35 0.35 Foiling 0.75 0.75 0.75 0.75 Labelling 1 1 1 1

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