Billy Corp allocated the following amounts of manufacturing overhead to Products A & B using only direct labor hours as a driver:

Product A 168,000

Product B 112,000

Billy has decided to switch to ABC for the allocation of manufacturing overhead. Billy will still use direct labor hours as a driver for $120,000 of overhead. The remaining overhead will be allocated using machine hours. Product A uses 2,000 machine hours and Product B uses 6,000 machine hours.

a) How much additional overhead is allocated to Product B after switching to ABC?

b) Refer to above. How much overhead is allocated to Product A in the machine hours pool?

c)Tammy Corp has the following data:

Variable Cost/Unit = $48

Variable Cost % = 80%

Fixed Cost = $96,000

Tax Rate = 30%

How many units must Tammy sell to make an after-tax profit = $40,320?

d) Refer to above. What is the total variable cost when Tammy makes an after-tax profit = $117,600?