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10) To see if your suspicion is correct, you decide to examine the costs under the current system (which uses a single POHR) vs. the

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10) To see if your suspicion is correct, you decide to examine the costs under the current system (which uses a single POHR) vs. the costs under an ABC system for the department's most popular product: Wristbands. The department sells two types of wristbands: a basic white 2-pack and a premium red- blue 2-pack, as shown below. Each 2-pack is considered one unit. Basic Wristbands Premium Wristbands Use of the weaving/sewing machines is believed to drive MOH costs. At the beginning of the year, the total estimated MOH cost for production of the wristbands is $68,200, and the estimated machine hours were 5,000 for Basic wristbands and 1,200 for Premium wristbands. At the end of the year you can see that 28,000 Basic wristband units and 15,000 Premium wristband units were produced. The Basic wristbands used 4,200 machine hours and Premium wristbands used 1,000 machine hours this year. a. Calculate the current, single POHR used by the department. POHR- of MOH cost per machine hour

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