ABC 226 Exam- TopperTummy Ltd produces two types of dog beds, the Hoppy bog" and the Exclusive Deluxe "Lucky Dog ones Management recently hired a smart, beautiful, gifted USCA graduate that told them a bout Activity-Based Costing overhead allocations that would have more accurate product costing. They have been using a regulan Single-Rate overhead allocation system that relied only on mochine hours to allocated costs, unlike the suggested ABC method that the USCA graduate proposes to use, which has four cost bases. Below are some of the relevant cost ond activity information supporting the change to ABC The company made 10,000 Happy Dog beds in 2018 along with 2,000 of the luxury Lucky Dog beds. The Hoppy Dog uses 2 machine hours, 1.5 hours of inspection time, t hour of equipment maintenance, and 4 direct labor hours to make. The bumpy uses 3 hours of machine time, 1 hour of inspection, hour of equipment maintenance and 2 hours of direct labor to manufacture. Estimated overhead costs and related data follow: (Assume these are the only overhead costs) Overhead Area Fabric Cutting Sewing & Stuffing Inspection & Finishing Inspection hours All other overhead Estimated costs Estimated Activity ost Driver Direct labor hours Number of Beds Made $540,000 $150,000 $240,000 $600,000 36,000 hours 5,000 hours 4,000 hours 60,000 hours hours Questions: What is the overhead cost that would be assigned to each product (Mucho-binero & bumpy) for each of the two products? o) Using Activity-based costing methods for the overhead allocation, determine the total cost by product, and unit cost for each. b)If they used the traditional, single-driver method (the chapter 2 over & under method), what would be the rate based on the above Hint on the troditionat rute question This has NOTHENG to do with the ABC question Just go back to the way we did it before: (1) Fotol up the overhead, get a rnte you're done You do NOT have to apply the rate, figure cost by product, nane of that, just colculate the single-driver nate