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Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs

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Chrom Co. manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Estimated Overhead Costs by Estimated Direct Labor Hours & Finishing Department Total: $8,000,000 Machine Hours by Department 150,000 hrs 125,000 hrs 100000 100,000 hrs 75,000 hrs Assembly Assembly 50,000 hrs Assembly 25,000 hrs Check my wor 25000 < Prev 12 of 27 Finishing Direct Labor Hours Next >> Finishing Machine Hours 30000 Estimated Overhead Costs by Cost Driver & Expected Usage Activity by Activity Supervision 2000000 6000 Total: $8,000,000 Supervision Maintenance Maintenance < Prev 82 12 125006 PLH of 27 100000 Next > MH Compute the overhead cost per unit of each model using ABC. XL RD Activity Activity Usage Activity Rate Allocated cost Activity Usage Activity Rate Allocated cost Maintenance 12,500 MH $ 60 per MH MH per MH Supervision 25,000 DLH 16 per DLH DLH per DLH Totals $ 0 $ Units produced Overhead cost per unit 0 Cequired A Required 28 > 0 Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Model Activity Usage Plantwide OH Rate OH Cost Per Unit XL DLH RD DLH < Required 2A Required 3> a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Activity cost pool Maintenance Supervision Budgeted Cost Budgeted Activity Usage Activity Rate $ 6,000,000 100,000 MH $ 60 per MH $ 2,000,000 125,000 DLH S 16 per DLH

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