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Product Costing Accuracy, Consumption Ratios Plata Company produces two products: a mostly handcrafted soft leather briefcase sold under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two overhead activities, with the following costs: Setting up equipment $ 3,000 Machining 22,000 The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production. Elegant Fina Direct labor $9,000 $3,000 Direct materials $3,000 $3,000 Units 3,000 3,000 Machine hours 500 4,500 100 Setup hours 100 Required: 1. Conceptual Connection: Do you think that the direct labor costs and direct materials costs are accurately traced to each briefcase? Explain. Yes. Because direct materials and direct laborare directly traceable to each product, their cost assignment should be accurate, 2. Calculate the consumption ratios for each activity. Round your answers to one decimal place, Elegant Fina Required: 1. Conceptual Connection: Do you think that the direct labor costs and direct materials costs are accurately traced to each briefcase? Explain. Yes. Because direct materials and direct labor are directly traceable to each product, their cost assignment should be accurate, 2. Calculate the consumption ratios for each activity. Round your answers to one decimal place. Elegant Fina Machining Setups 3a. Calculate the overhead cost per unit for each briefcase by using a plantwide rate based on direct labor costs. Round to the nearest cent. (Note: Do not round intermediate calculations.) Elegant $ per briefcase Fina per briefcase 3b. Based on your calculations above which of the following statements is correct? 4. Conceptual Connection: Calculate the overhead cost per unit for each briefcase by using overhead rates based on machine hours and setup hours. Round your answers to the nearest cent. Elegant $ per unit Fina Der unit 1. Conceptual Connection: Do you think that the direct labor costs and direct materials costs are accurately traced to each briefcase? Explain. Yes. Because direct materials and direct labor are directly traceable to each product, their cost assignment should be accurate. 2. Calcu Yes. Because direct materials and direct labor are directly traceable to each product, their cost assignment should be accurate. Partly correct. The direct material is directly traceable to each product but direct labor is not traceable to each product. Machini Partly correct. The direct labor is directly traceable to each product but direct material in not traceable to each product. Setups No. The direct material and direct labor is not traceable to each product