Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activitybased costing (ABC). "the controller identied two activities and their budgeted costs: Setting up equipment $690,000 other overheard $3,840,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 12,000 3,000 Oven hours 3,000 21,000 I'\\ Required: Round your answers to the nearest whole dollar, unless otherwise directed. 1. Calculate the activity rate for (a) setting up equipment and (b) other overhead. 2. How much total overhead is assigned to Fudge um'ng ABC? a. Setting up equipment per setup hour b. other overhead per oven hour U 3. What is the unit overhead assigned to Fudge using ABC? Round to the nearest cent. er unit D 4. Now, ignoring the ABC results, calculate the plantwide overhead rate, based on oven hours. Round to the nearest cent. per oven hour U 5. How much total overhead is assigned to Fudge um'ng the plantwide overhead rate? U 6a. The difference in the total overhead assigned to Fudge is different under the ABC system and nonABC system because V . 6h. What is the difference in total overhead assigned to fudge under the two methods