ABC Company manufactures purple widgets and pink widgets through two production departments. Fabrication and Assembly. In order to determine the gross profit for each product, management needs accurate product cost information. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering revising its overhead policy. The budgeted factory overhead and direct labor hours for the period are. The estimated Direct Labor Hours and Machine Hours ane as follows: The actual direct labor hours for each product were determined as follows: The actual machine hours for each product were determined as follows: The per unit sales, direct materials and direct labor amounts are as follows: Directions [Plantwide Overhead Method]: 1. Assuming that the company uses dinect labon houns as the activity base, calculate the plantwide predetermined factory overhead rate (FOV per DLH). Use the plantwide predetermined factory overhead rate to apply overhead to the Purple Widget and the Pink Widget (this number will represent the factory overhead amount per unit). Answers must include the plantwide factory overhead formula (using words \& numbers). 2. Calculate the product cost per unit and the gross profit per unit for the Purple Widget and the Pink Widget. Calculations must include words and numbers. Create a Table similar to the Table demonstrated on Canvas. After speaking with a consultant, ABC Company has decided to explore the use of the departmental overhead method. Directions [Departmental Overhead Method]: 1. Assuming that the company uses direct labon hours as the activity base for the Fabrication Department and machine hours as the activity base for the Assembly Department, determine departmental factory overhead rate for both departments. Use the departmental factory overhead rates to apply overhead to the Purple Widget and the Pink Widget (this number will represent the factory overhead amount per unit). Answers must include the departmental overhead formula (using words \& numbers). 3. Calculate the total product costs per unit and the gross profit per unit for the Purple Widget and the Pink Widget. Calculations must include words and numbers. Create a Table similar to the Table demonstrated on Canvas. Summary [Comparative Analysis of Ovenhead Methods] In reviewing the two overhead allocation methods, management noticed that the gross profit per unit increased for the Purple Widget and decreased for the Pink Widget. Based on your understanding of both the overhead methods, explain to management what caused the changes in gross profit for the two products. Explanation must use the terminology included in the chapter. Explanation must use the calculations included with this problem. Explanation must be at least four to five complete sentences