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Broadening Your Prospective Essay1. Compute the practise-based over vanguard rate for each natural action cost pool. Activity-based overhead is determined by dividing estimated overhead by the estimated cost drivers. Activity cost Pool Estimated Overhead /Cost drivers=ACB Overhead Rate commercialize analysis 1,050,00015,000$70Product Design2,350,0002,500$940Product development3,600,00090$40,000Prototype testing1,400,000500$2,8002. How much cost would be charged to an in-house manufacturing department that consumed 1,800 hours of market analysis time, was provided 280 designs relating to 10 merchandises, and requested 92 engineering tests?The total charged to an in-house manufacturing department would be $1,046,800. This dollar amount is determined by multiplying the overhead rates of each activity to the amount consumed for that activity and added together for a total. (1,800*70= 126,000), (280*940=263,200) (10*40,000=400,000), (2,800*92=257,600)3. How much cost would serve as the basis for pricing an RD bid with an impertinent company on a contract that would consume 800 hours of analysis time, require 178 designs relating to 3 products, and result in 70 engineering tests?$539,320 would serve as the basis for pricing an RD bid with an outside company because that dollar amount is the breakeven point. (800*70=56,000), (178*940=167,320), (3*40,000= 120,000), (70*2,800=196,000) 4. What is the benefit to Ideal Manufacturing of applying activity-based costing to its RD activity for two in-house and outside charging purposes? The benefit to Ideal Manufacturing of applying activity-based costing to its RD activity for both in-house and outside charging purposes is it will allow the company to gain control of the operating costs of the department.Activity-based costing allows a company to appropriately assign overhead head cost. For example, Ideal manufacturing activities fell into four pools and activity-based costing helped the company to properly allocat e its overhead dollars. Under using or over using overhead dollars way the company has to supplement those funds from or to another activity which is a waste to the company. The basis of activity-based costing is to assign cost only to those activities of a product that is actually using the activity in essences cutting costs. This is not only a benefit to Ideal Manufacturing but to any company that is looking to incur more efficient and effective.