$1.$ do you think that the direct labor cost and direct material cost are accurately traced to each type of purse?

$2.$The controller has suggested that overhead cost be assigned to each product using a plant wide rate based on direct labor dollars. Machine cost, and set up cost or overhead cost. Assume that these are only overhead cost. For each type of purse calculate the overhead per unit that would be assigned using a direct labor dollars overhead rate.

$3.$ now calculate the overhead cost per unit per purse using two overhead rates: one for the set up activity and one for the machining activity.