20. (10 points) Metal Casting (MC) Inc. currently uses a job costing system that allocates overhead based on direct labor hours. Costs for it two metal plate products MP21 & MP22 are: Units produced Direct materials used MP21 12,000 MP22 8,000 Direct labor Factory overhead applied $37,200 $32,400 $6,000 $ 24,800 $21,600 $ 4,000 a. Calculate the total cost per unit for each product MP21 & MP22 using the current allocation system. MC has gathered the following ABC information. Design Costs Machine Setups Purchasing ABC Rate $75/design hour $240/setup $125/purchase order Activity Usage MP22 85 hrs. MP21 28 hrs. 8 setups 15 setups 5 orders 10 orders b. Calculate the total cost per unit for each product MP21 & MP22 using the ABC method for allocating overhead (round your solutions to the nearest two decimals-dollars and cents). c. For the MP22 product and based on your analysis discuss the impact to profitability if MC continues using the current job costing method to allocate overhead.