5. Ken Company allocates overhead on the basis of the number of direct labor hours because the production process is very labor intensive. In the coming year, the company expects to produce 5,000 units of Product A which will require a total of 800 labor hours and 2,500 units of Product B which will require a total of 200 labor hours. What is the plant-wide predetermined overhead allocation rate assuming the company expects to incur total overhead costs of $20,000? Goog A. S20 per labor hour 2500 B. $2.67 per unit 900 C. $25 per labor hour for Product A and $100 per labor hour for Product B D. None of these 200 6. Select the correct statement regarding fixed costs. A. Because they do not change, fixed costs should be ignored in decision making. B. The fixed cost per unit increases when volume increases. C. The fixed cost per unit decreases when volume increases. D. The fixed cost per unit does not change when volume decreases