2. Met: Automat Company makes and sells low-orbit satellites used for telecommunications and research. Satellites are made to customer specications in two departments: (i) Fabrication, and (ii) Assembly. In the Fabrication Department, satellite components are made using parts purchased from outside suppliers. In the Assembly Department the satellite components are assembled into complete satellites; each satellite is modied to exact customer specications and is extensively tested (as costs of failure are very high). Met: Automat Company uses normal absorption costing to compute the cost of each satellite. Overhead costs (OH) are allocated separately for each department; the allocation base in each departments is that department's direct labor cost (DL$). For 2020, estimated OH rates were: 240% of DL$ in Fabrication; 75% of DLS in Assembly. In September 2020, a satellite was completed and delivered to Greys Exploration Company {work on this satellite was started in June 2020). The following information is available about the direct costs of this satellite, both budgets (prepared in May 2020) and actuals {prepared after the satellite was completed and delivered to the client); some information is intentionally omitted: Fabrication Assembly Budget Actual Budget Actual Direct materials $63,000 $54,000 $16,000 $9,000 Direct labor ? ? $73,000 $61,000 OR allocated to the Greys Exploration satellite in the Fabrication department equaled $82,000. The amount of OH allocated to the satellite in the Assembly Department is not available, you need to compute it. 2.1 [10 points]- What was the total cost attached to the Greys Exploration satellite by Met: Automat's normal absorption costing system? 2.2 [5 points]. Until January 1, 2020 Metz Automat Company used normal absorption costing with company-wide OH allocation, with a single OH rate per DL$ (the switch to departmental OH allocation was made on January 1, 2020). When doing analysis of 2019 financial results, Metz Automat analysts discovered that in 2019, overhead was overapplied. What can we conclude from that with certainty? A. Actual overhead for 2019 was lower than estimated overhead for 2019 B. Actual total DLS amount for 2019 was lower than total estimated 2019 DLS's C. Actual total DL$ amount for 2019 was greater than total estimated 2019 DL$'s D. Actual overhead for 2019 was lower than overhead applied to Work in Process in 2019' E. Actual overhead for 2019 was greater than overhead applied to Work in Process in 2019