1. What is the company's plantwide overhead rate? 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to pillows? What about for mattresses 3. By how much does the allocation of overhead utilizing a plantwide rate mattress exceeded the allocation of overhead utilizing ABC? What about for pillows exceeded?

Best Sleep manufactures two products - 14,000 units of Pillows and 6,000 units Mattresses. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC ) system that allocates all $420,000 of its manufacturing overhead to five cost pools. The following additional information is available for the company as a whole and for Pillows and Mattresses