Departmental MOH Rates: $ 2.75 Department 1 Fabrication Machine Hours 55,000 145,000 $ 1.25 Department 2 Assembly Direct Labor Hours 110,000 330,000 Model A Model B Model A Model B Departmental OH Allocation Direct Materials & Direct Labor Allocated MOH Dept 1 Allocated MOH Dept 2 Total Product Costs Product Cost (CGS) per unit Selling Price per unit CGS per unit Gross Proft per Unit Compare the results for the simple cost allocation system (plant-wide) with that of an ABC system. Plant wide Departmental Activity Based Model A Selling Price per unit CGS per unit Gross Profit per Unit Model B Selling Price per unit CGS per unit Gross Profit per Unit $ $ Units produced & sold per year Sales Revenue Prime Cost # of Direct Labor Hours # of Machine hours # of Set Ups # of Inspection runs # of packing orders Product Data Model A Model B 20,000 200,000 600,000.00 $ 6,000,000.00 100,000.00 $ 1,000,000.00 140,000 300,000 180,000 160 600 1,400 9,000 81,000 20,000 40 Manufacturing Overhead Costs: Machining $ 160,000.00 Setup costs $ 180,000.00 Inspection costs $ 140,000.00 Packing Costs $ 180,000.00 Total $ 660,000.00 Model B Model A los plant wide MOH