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Marider Industries makes two types of windbreaker jackets: one for spring and one for winter. Marider uses a traditional costing system and is considering switching to an Activity$-$Based Costing system. Marider applies overhead on the basis of direct labor hours. Below is information about its production facility.

$$ Spring Winter Sales $ $378,000$ $ $288,000$ Materials Cost $ $52,900$ $ $26,100$ Labor Cost $ $41,400$ $ $24,300$ Units Produced and Sold $4,2002,400$ Total Direct Labor Hours $10,8803,240$

Total Estimated Overhead Cost $ $117,000$ Total Estimated Direct Labor Hours $14,500$

Activity$-$Based Costing Information Activity Activity Driver Total Estimated Cost Spring Usage Winter Usage Total Cutting Cutting Hours $ $21,0601,5807402,320$ Sewing Sewing Hours $ $32,7609,3002,50011,800$ Inspecting Number of Inpections $ $4,68020050250$ Packing Units Produced $ $11,7002,3009003,200$ Machine Setups Number of Setups $ $17,55060150210$ Material Moves Number of Material Moves $ $29,2502090110$

Required:

Calculate the Predetermined Overhead Rate.

Use the Predetermined Overhead Rate to calculate total overhead applied to each jacket type.

Calculate the Gross Profit per jacket type.

Calculate the Activity Rates for the Activity$-$Based Costing system.

Use the Activity Rates to calculate the total overhead applied to each jacket type.

Calculate the Gross Profit per jacket type.

Indicate whether the traditional costing system overcosted or undercosted the jackets.

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