A company manufactures two product models, a standard model and a premium model. The company considers all of its manufacturing overhead to be fixed and it uses a plant wide manufacturing overhead cost allocation based on direct labor hours. Selling and admin expenses are allocated based on sales. Units produced and sold Sales Cost of Goods Sold Gross Margin Selling & Admin exp. Operating Income (loss) Standard Premium Total 20,000 3,000,000 10,000 30,000 2,000,000 5,000,000 2,100,000 1,435,000 3,535,000 900,000 565,000 1,465,000 700,000 480,000 1,180,000 200,000 85,000 285,000 Employees on the assembly line make $22 per hour. Direct materials cost $42 for the basic model and 60 for the advanced model. The company is considering changing to charging overhead on a departmental basis, rather than using a single plant wide rate. The Assembly department would be based on direct labor hours and the Packaging department would be based on machine hours. Additional data includes: Total Overhead Assembly 740,000 Packaging 580,000 Total 1,320,000 Direct Labor Hours Standard Premium 10,000 5,000 20,000 30,000 10,000 15,000 Machine Hours Standard Advanced 12,000 12,000 10,000 10,000 1. Calculate the plant wide overhead rate and the amount of overhead that would be assigned to each product line using the plant wide rate. 2. Calculate the departmental rates for assembly and packaging. Calculate the total amount of overhead assigned to each product line. 3. Using the departmental rate, create a new income statement by product line (allocate selling and admin expenses based on sales dollars).