a.) What is the overhead cost allocation to each product using the current volume-based system?

b.) What is the overhead cost allocated to each product using the ABC system?

c.) Using the current system is the Starter product under or over costed? Show calculations to support your answer.

d.) What is the impact of pricing the Starter product under the current allocation method?

** I NEED HELP WITH THIS PROBLEM. PLEASE SHOW WORK AND CALCULATION SO I CAN UNDERSTAND ANSWERS. THANK YOU!!**

21. (10 points) Soccer Company manufactures two soccer ball products: Competitor and Starter. The most recent results for these products follows: Units produced Direct materials Direct labor Machine hours Competitor 20,000 $100,000 $ 68,000 400 Starter 5,000 $20,000 $ 12,500 110 Soccer Company currently uses a simple volume based overhead costing system. Overhead is allocated based on machine hours at the predetermined overhead rate of $118 per machine hour. Soccer Company is considering adopting Activity Based Costing (ABC) to allocate overhead costs and has gathered the following information. Activity Consumption Overhead Cost Pool ABC Rate Competitor Starter Machine setups $ 70 / set-up 250 set-ups 172 set-ups Machine maintenance $65 / machine hour 400 machine hours 110 machine hours