Bugaboo Co. manufactures three types of cookies: Fluffs, Crinkles, and Snaps. The production process is relatively simple, and factory overhead costs are allocated to products using a single plantwide factory overhead rate based on direct labor hours. Information for the month of May, Bugaboo's first month of operations, follows: Budgeted Unit Volume Direct Labor Fluffs 80,000 boxes Crinkles 60,000 boxes Snaps 20,000 boxes Hours Per Unit 0.10 0.20 0.50 Bugaboo has budgeted direct labor costs for May at $8.50 per hour. Budgeted direct materials costs for May are: Fluffs, $0.75/unit; Crinkles $0.40/unit; and Snaps $0.30/unit. Bugaboo's budgeted overhead costs for May are calculated as follows: Indirect labor Utilities Supplies Depreciation Total $280,000 65,000 45,000 30,000 $420,000 Round your answers to two decimal places, if necessary. a. Compute Bugaboo's plantwide factory overhead rate for May. per direct labor hour b. Compute the product cost in May for each type of cookie. Cost per box Fluffs Crinkles Snaps c. Does Bugaboo's use of a plantwide factory overhead rate in any way distort the product costs for May?