150 Generic Motors Corporation has two product lines, A and B. Its revenue and costs for last year is as follows: Product A Product B Total sales volume (units) 50 100 Revenue $4,000 $20,000 $24,000 Costs: direct materials $800 $4,000 $4,800 direct labor $2,000 $8,000 $10,000 OH costs $7,800 Profit $1,400 Generic Motors uses ABC to allocate the overhead costs. It examined the main activities in the firm, and decided to break up the total overhead costs of $7,800 into 3 cost pools: * "labor-related" - the total cost in this pool is $2,000, allocated based on direct labor dollars * "sales-related" - the total cost in this pool is $1,800, allocated based on number of units * "production setups" - the total cost in this pool is $4,000, allocated based on the number of production batches. A is produced in batches of 10 units, and B is produced in batches of 5 units. Required: a) for each cost pool, compute the activity rate and the amounts allocated to product A and product B. (hint: The amounts allocated to A and B from each pool should add up to the total cost in that pool. To allocate the costs in the "production setups" pool, you will have to compute the number of batches. If the total number of batches for A and B does not add up to 25, you are doing something wrong). * "labor-related" pool: activity rate = $ per DL$ Labor-related OH costs allocated to A = $ Labor_related OH costs allocated to B = $ * "sales-related" pool: activity rate = $ per unit Sales-related OH costs allocated to A = $ Sales_related OH costs allocated to B = $ * "production setups" pool: activity rate = $ per batch Production setups OH costs allocated to A = $ Production setups OH costs allocated to B = $ Production setups OH costs allocated to A = $ Production setups OH costs allocated to B = $ b) using the allocated OH costs from (a), compute the profit margin for product A and product B. If you get a negative number, enter it with a minus sign, i.e., enter negative $100 as -100, not ($100) profit margin for A = $ profit margin for B = $