Problem 2. Need help with the grey shaded areas! Please include formulas.

H1 Tebow Inc. manufactures three products and it is estimated that the following activity will take place during the next production period: \begin{tabular}{|l|r|r|r|r|} \hline Product & Total output (units) & Direct material costs per unit (\$) & Machine hours per unit & Total machine hours worked \\ \hline A & 10,000 & 14 & 0.5 & 5,000 \\ \hline B & 20,000 & 17 & 17 & 1.5 \\ \hline C & 1,000 & 22 & 1 \\ \hline & & 1,000 \\ \hline \end{tabular} Indirect manufacturing overheads for the period are estimated at $360,000. Overheads are currently allocated to products using the total number of machine hours worked. The company is about to implement an activity-based costing (ABC) system and analysis of overhead has identified the following activity cost pools and cost drivers: \begin{tabular}{|c|c|} \hline Overhead cost pools & \$Activity-based cost drivers \\ \hline Machine maintenance & 153,000 Machine hours worked \\ \hline Set up costs & \begin{tabular}{l|l} 62,100 & Number of set-ups \\ \end{tabular} \\ \hline Materials ordering & 89,100 Number of materials orders \\ \hline Finishing activity & 21,600 Number of finishing hours \\ \hline Product testing & \begin{tabular}{l|l} 34,200 & Number of product tests \\ \end{tabular} \\ \hline Total overhead & 360,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline Product & A & B & C & Total \\ \hline Machine hours worked & 5,000 & 30,000 & 1,000 & 36,000 \\ \hline Number of set-ups & 3 & 6 & 9 & 18 \\ \hline Number of materials orders & 200 & 1480 & 300 & 1,980 \\ \hline Number of finishing hours & 120 & 100 & 20 & 240 \\ \hline Number of product tests & 50 & 25 & 75 & 150 \\ \hline \end{tabular} Required: a. Calculate a predetermined overhead allocation rate (POHR) assuming that all manufacturing overheads are allocated using the total machine hours (MH) worked POHR= per machine hour b. Calculate the total cost per unit for each product using the traditional cost allocation rate calculated in part a) (HINT: do not forget the direct costs for each product) \begin{tabular}{|l|l|l|l|} \hline Product name & A & B & C \\ \hline DM costs per unit & 14 & 17 & \\ \hline DL costs per unit & & & \\ \hline Allocated MOH costs per unit & & & \\ \hline Total unit costs & & \\ \hline \end{tabular} c. Using the activity-based costing (ABC), calculate the overhead allocation rate for each overhead cost pool. 45 c. Using the activity-based costing (ABC), calculate the overhead allocation rate for each overhead cost pool. \begin{tabular}{|l|l|l|l|l|} \hline Activities & Activities cost pools & \multicolumn{1}{|c|}{ Cost drivers } & Activity rates \\ \hline Machine maintenance & & & Machine hours & \\ \hline Set up costs & & Setup & \\ \hline Materials ordering & & Material orders & \\ \hline Finishing activity & & Finishing hours & per Setup \\ \hline Product testing & & Tests & per Material orders \\ per Finishing hours \\ per Tests \end{tabular} d. Calculate the total cost per unit for each product using ABC. Clearly show all intermediate workings. \begin{tabular}{|l|l|l|l|} \hline Product name & A & B & C \\ \hline & & & \\ \hline DM costs per unit & & & \\ \hline DL costs per unit & & & \\ \hline Overhead costs & & & \\ \hline Machine maintenance & & & \\ \hline Set up costs & & & \\ \hline Materials ordering & & & \\ \hline Finishing activity & & & \\ \hline Product testing & & & \\ \hline Total MOH costs & & & \\ \hline MOH costs per unit & & & \\ \hline Tota costs per unit & & & \\ \hline \end{tabular} e. Briefly explain why the cost per unit computations calculated in parts (b) and (c) are different Briefly explain why ABC result in more accurate product costs for each of the three products? Type Answer here