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Coffee Bean incorporated (CBI) processes ond distributes high-quality coffee. CBi buss colfee beans from around the world and roasts, blends, and packages them for resale. Currently, the firm offers 2 colfees to pourmer shops in 1-pound bags. The major cost is direct materials; howevec, a substantial amount of factory overhead is incurred in the predominantly automated roasting and packing process. The company uses relatively littie direct labot Cel prices its colfee at full product cost, including allocated overhend, plus a markup of 30%. If its prices are significanty higher than the market, CBI lowers its prices. The company competes primartly on the qualty of its products, but customers are price consclous as well. Data for the current budget include factory overhead of $3,154,000, which has been allocated on the basis of each product's direct labor cost. The budgeted direct iabor cost for the current year totals $600,000. The firm budgeted $6,000,000 for purchase and use of direct materials (mostly cotfee beans) The budgeted direct costs for hound bags are as follows: CBi's controlle, Mona Clin, believes that its current product costing system could be providing misleading cost information She has developed this analysis of the current year's budgeted factory overthead costs: Data regarding the current year's production for the Mona Los and Maloysian lines follow. There is no beginning or ending direct materiels inventory for either of these coffees. Coffee Beon has total practical capocity as noted in the table below, Le, processing 1620 purchase ordecs, 2.620 setups, efc. These Coffee Bean has totar practicai capocity as noted in are the levels of activity work that are sustainoble. Required: Required, 1. Determine the activity rates based on practical capacty and the cost ef lide capecty for each activity (Round "Usage s" and "Practical Capactity Ratex" to 2 decimal places. For percentages 1234=12.345

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