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 $,$$$598,000$

Other overheard $$1,240,000$

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:

Required:

Round your answers to the nearest whole dollar, unless otherwise directed.

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

a$.$ Setting up equipment $$ per setup hour

b$.$ Other overhead $$ per oven hour

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

$

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

$$,$ per unit

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

$$,$ per oven hour

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

$

$6$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?