Acclaim Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Acclaim does large custom orders. Acclaim budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50. (Click the icon to view budgeted information.) Read the requirements. ... Requirement 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plant-wide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) Start by calculating the total direct costs for the basic and deluxe trophies departments. Basic Deluxe Total Direct materials Forming $ 95,000 60,000 $ 5,000 35,000 $ 10,000 15,000 Assembly Total direct materials 65,000 45,000 110,000 Direct manufacturing labor Forming 50,000 30,000 15,000 20,000 25,000 40,000 Assembly Total direct manufacturing labor 45,000 45,000 90,000 $ 110,000 $ 90,000 $ 200,000 Total direct costs Next, calculate the budgeted overhead rate for total overhead allocated based on total direct costs. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent, $X.XX. Abbreviations used: DC = Direct cost, DL = Direct labor, $ = dollar.) Total overhead costs Total direct costs Budgeted overhead rate $ 0.60 per DC $ $ 120,000 200,000 Finally, calculate unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, $X.XX.) Basic Deluxe Total Total direct costs $ 90,000 $ 110,000 $ 66,000 200,000 120,000 Allocated overhead 54,000 $ 144,000 176,000 $ 320,000 Total costs Unit cost $ 17.60 $ 28.80 Requirement 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. Start by calculating the budgeted overhead rate for the forming and assembly departments based on direct manufacturing labor costs. First select the formula, then enter the applicable amounts and calculate the rates. (Round the budgeted overhead rates to the nearest cent, $X.XX.) Budgeted overhead costs Budgeted direct labor costs Budgeted overhead rate Forming 80,000 50,000 $ 1.60 per DL $ Assembly $ 40,000 40,000 $ 1.00 = - per DL $ Finally, calculate the unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, $X.XX.) Basic 10,000 Deluxe 5,000 Total 15,000 Total direct costs Allocated overhead Forming Department Assembly Department Total costs Unit cost Data Table The controller has asked you to compare plant-wide, department, and activity-based cost allocation. Acclaim Budgeted Information for the Year Ended November 30, 2017 Forming Department Basic Deluxe Total Direct materials $ 60,000 $ 35,000 $ 95,000 Direct manufacturing labor 30,000 20,000 50,000 Overhead costs: Set up 48,000 Overhead costs: General overhead 32,000 Assembly Department Basic Deluxe Total Direct materials $ 5,000 $ 10,000 $ 15,000 Direct manufacturing labor 15,000 25,000 40,000 Overhead costs: General overhead 40,000 Requirements 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plant-wide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Acclaim allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department 4. Explain briefly why plant-wide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why