A. Calculate total cost and average cost per unit if the overhead is based on the direct labor cost. Show information as Job cost sheet.

B. Which overhead cost allocation method would you recommend to the controller?

Larabee Company produces two types of product, flat and round, on the same production line For the current period, the company reports the following data Flat $12.000 Round Total Direct materials Direct labor Overhead (250 % of direct labor cost) Total cost Units produced Average cost per unit $36.000 24.000 60,000 33,000$87.00S120,000 $24.000 18,000 5.000 6,000 5.000 0,000 $3.30 15,000 $5.80 Larabee's controller wishes to apply activity-based costing (ABC) to allocate the $60,000 of overhead costs incurred by the two product lines to see whether cost per unit would change markedly from that reported above. She has collected the following information. Usage Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machincry Assembly line preparation Driver Flat Round Total Direct labor cost ) Machine hours Setups (number) $24,000 500 hours 900 hours 80 times120 times $6,000 $18.000 400 hours 40 times