Comparing ABC and Plantwide Overhead Cost Assignments

Wellington Chocolate Company uses activity$-$based costing $($ABC$).$ The controller identified two activities and their budgeted costs:

Setting up equipment $$378,000$

Other overheard $$1,080,000$

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 $8,000445,000$

Setup hours $7,2001,800$

Oven hours $1,0007,000$

$1.$ Calculate the activity rate for $($a$)$ setting up equipment and $($b$)$ other overhead.

a$.$ Setting up equipment $fill in the blank $1$ per setup hour

b$.$ Other overhead $fill in the blank $2$ per oven hour

$2.$ How much total overhead is assigned to Fudge using ABC?

$fill in the blank $3$

$3.$ What is the unit overhead assigned to Fudge using ABC? Round to the nearest cent.

$fill in the blank $4$per unit

$4.$ Now, ignoring the ABC results, calculate the plantwide overhead rate, based on oven hours. Round to the nearest cent.

$fill in the blank $5$ per oven hour

$5.$ How much total overhead is assigned to Fudge using the plantwide overhead rate?

$fill in the blank $6$

$6$a$.$ The difference in the total overhead assigned to Fudge is different under the ABC system and non$$ABC system because

$.$

$6$b$.$ What is the difference in total overhead assigned to fudge under the two methods?

$fill in the blank $8$