A company produces three products: Institutional, Standard, and Silver. The company used a Traditional Costing System with a predetermined overhead rate of $9 per unit produced based on an estimated $945,000 total overhead and estimated 105,000 units to be produced between all three products. The company uses six overhead activities for which budgeted information is provided below:

The company uses six overhead activities for which budgeted information is provided below: Activity Processing Set Up Handling Machine Depreciation Quality Control Packing Cost Driver Number of Orders Number of production runs Pounds of materials used Machine hours Number of inspections Number of units Estimated Cost $45,000 180,000 300,000 240,000 60,000 120,000 The company also collected expected production information for each product. Actual labor costs was $15 per labor hour. Institutional Standard Silver Units Produced 70,000 27,000 8,000 Direct Materials Cost $39,000 $24,000 $15,000 Direct Labor Hour 450 450 600 Orders 12 Production Runs Pounds of Materials 15,000 6,000 3,000 Machine Hours 580 140 80 Inspections Units Shipped 70,000 27,000 8,000 9 6 Requirements: 1) Using the plantwide rate, compute the following for each product: Institutional Standard Silver Total Cost Cost per Unit 2) Using ABC, compute the following for each product Institutional Standard Silver DL OH Total Cost Cost per Unit 3) Using the Plantwide rate, is the product under or over costed? Institutional Standard Silver Over or Undercosted