Fischer Company identified the following activities,costs,and activity drivers:
a.Compute a plantwide overhead rate assuming the company assigns overhead based on 70,000 budgeted direct labor hours (Round to two decimals).
b.Compute separate rates for each of the four activities using the activity-based costing.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by total base units, used to allocate overhead costs to products.

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the activities that go into producing them, with the aim of providing more accurate product cost information.

Activity Drivers

Factors that cause changes in the costs of activities, used to allocate costs in activity-based costing accurately.