A) in 2020, PSI we use the predetermined overhead rate based on direct labour hours to allocate overhead. How much factory overhead was allocated to the model A product line and the model D product line?B) in 2020, if ABC had been used, how much factory overhead would have been allocated to the model A product line into the model D product line? Calculate the total unit cost for model A and model D under activity based costing. ?

Precision Scales Inc. (PSI) uses a traditional approach to overhead allocation. The company produces two different ale) and model D (a digital scale readout). Prices for the models of scales for use in homes, Model A (an analogue s PSI incurred $500,000 of factory overhead and two products are based on full costs of production. In 2020, produced 50,000 units of model A and 25,000 units of model D. Overhead was applied based on a predetermined overhead rate of $4 per direct labour-hour. Based on this rate, the cost per unit of each product in 2020 was as follows: Direct materials The market is becoming more competitive and PSI is looking into refining its costing system by introducing $500,000 of overhead costs could activity-based costing (ABC) next year. Analysis of the 2020 data showed that the be assigned to three activities as follows: Overhead costs assigned in 2020: $60,000 Material handling Equipment operations Management determined that the following activity drivers were appropriate for each overhead category: 2020 Activity Level 300 setups 150,000 kg Activity Driver Number of setups Quantity of material (kg) Machine-hours (MH) Materials handling Equipment operations Activity drivers and units produced in 2020 for each model are: Model A Model D Number of 175 125 - | | 60,000 90,000 handled (in kg) (in MH) 50,000 MH