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ABC; product profitability Outerwear Inc. is concerned about the profitability of its regular gloves. Company managers are considering producing only the top-quality, fleece lined, gloves.

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ABC; product profitability Outerwear Inc. is concerned about the profitability of its regular gloves. Company managers are considering producing only the top-quality, fleece lined, gloves. The company is currently assigning the $2,400,000 of overhead costs to both types of gloves based on machine hours. Of the overhead, $960,000 is utilities related and the remainder is primarily related to quality control inspectors' salaries. The following information about the products is also available. a. Determine the total overhead cost assigned to each type of gloves using the current allocation system. Total OH assigned to regular gloves: $ Total OH assigned to fleece-lined gloves: $ b. Determine the total overhead cost assigned to each type of gloves if more appropriate cost drivers were used. Total OH assigned to regular gloves: \$ Total OH assigned to fleece-lined gloves: s Total OH assigned to fleece-lined gloves: $ c. Determine the profit before tax for regular and fleece-lined gloves based on the overhead cost assignment in part (b). Profit before tax for regular gloves: $ Profit before tax for fleece-lined gloves

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