4H Friends Co. (4HF) uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. 4HF has provided their costing department the following information from this year's budget relating to the production of these two products: ABC XYZ Units to be produced 20,000 30,000 Machine-hours expected 500 1,000 Direct labor-hours expected 1,000 1,500 Materials handling (number of moves) 300 300 Machine setups (number of setups) 100 75 The following costs are expected to be incurred throughout the year, and are related to the cost drivers being measured: Direct Labor Wages $500,000 Materials Handling 37,200 Labor-related overhead 420,000 Machine setups 70,000 NOTE: Round all per-unit costs to nearest cent. Required: What is the rate that will be used to apply Labor-related overhead costs? What is the expected overhead per unit allocated of product ABC? What is the total expected overhead per unit allocated to product XYZ? If the company were to use a plant-wide rate based on machine hours, which product would be overpriced? (Assume that activity-based costing is more accurate)