considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on abor-hours. Koontz's controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): ta Basic 20,000 10,000 30,000 Number of units produced and sold Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) $3,000,000 $2,000,000 $5,000,000 3,650,000 1,350,000 1,200,000 2, 300,000 700,000 720,000 1,350,000 650, 000 480,000 paid $20 per hour Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental approach. The overhead costs in the company's Molding be allocated based on direct labor-hours. To enable further analysis, the controller gathered the following information: Department would be allocated based on machine-hours and the overhead costs in its Assembly and Pack Department would Aasemble and Pack Molding Total 787,500 562,500 $1,350,000 Manufacturing overhead costs Direct labor hours Basic Advanced 10,000 5,000 20,000 10,000 30,000 15,000 Machine hours Basic Advanced 12,000 10,000 12,000 10,000 Required: 1. Using the plantwide approach: a. Calculate the plantwide overhead rate. b. Calculate the amount of overhead that would be assigned to each product 2. Using a departmental approach: a. Calculate the departmental overhead rates. b. Calculate the total amount of overhead that would be assigned to each product. c. Using your departmental overhead cost allocations, redo the controller's segmented income statement (continue to allocate selling and administrative expenses based on sales dollars)