Die eerences/formulasin edells The gston Corporation produces the products Product Product and Product 2 Direct Labor $20 per hour is the estimated direct labor cost. Manufacturing Overhead $1,850,000 estimated total cost 36 Products 10 X Y 11 Number of units to be produced 30,000 20,000 10.000 1) Number of machine hours expected to be used 50.000 2,700 3.200 2.200 13 Number of direct labor hours pected to be used 8,100 20,000 7.500 3.000 30.500 15 Part 1: calculate the total cost of producing each product and 15 the werage cost per unit allocating MOH as described below. Hint First calculate the overal title 12 Total Direct Materials Used Tell me what you want to do $1,100,000 $480,000 $325,000 15 TotalDimatabor Cost 51.305.000 $400.000 $150.000 $60,000 20 Alocated amount of MOHapplied using direct labor hours 5610,000 21 as the factory wide cost driver Overhead application rate using OL pour 22 Total Cost 2 Aver count 25 26 Part 2: cal the total cost of producing each product 27 and the average cost per unit locating MOH described below. 28 29 Total Direct Manis Used $1,100,000 10 Total Direct labor cost 5480,000 5325.000 51.905,000 $400.000 $150 000 1 Alocated amount MOHledare machine hours 5610.000 32 as the factory wide cover Overhead application at ting Machine hour. 33 Total Con Avere costerut 36 Port: You decide to see tunne activity-based contine will provide a different, perhaps more accurate results for the werage cost of producing each unit of product 1 Calculate the cost of producing each product and the average cost peruntuoti MONO debelow 30 - You cut the following information about the overtad con 41 Estimated amount of 4 A Estimated Coster con river wied for Product Auto Produkty Product Overhead 45 Shot machines of 120 NO 50 250 16 Dreng of machine $100.000 3.700 3,200 2.200 Overheadcations for cheap 8100 4 Assembly of director hon 20000 7500 $110.000 Overhead action rate for dig 30500 inspection ofections $425.000 30 20 300 Overhead placionat amb 19 $215.000 Overhead aplication for inspection 10 51.350.000 Sheet1 + Total 000 Hoody 11 Avenue copt H 2.700 3.200 2 Part You decide to see if thy-based conting will provide a different, perlaps more accurate result for the average cost of producing each unit of product. 3 Colulate the total cost of producing each product and the average cost per un allocating MOH as described below 20 4. You get the following information about the overhead conte 41 Estimated amount of Estimated Activy Cost driver cont diverse for Total Amount of 45 ProductX ProductY Product Overhead 44 45 Setup of machines of setups 120 BO 50 250 $300,000 46 Drilling of machine houn 2,200 8100 $910,000 ** Assembly of direct labor hour 20000 7500 3000 30500 $425,000 4 Inspection Hof inspection 50 30 20 300 5215.000 49 $1,850,000 50 3 Total Direct Matera Uved $1,100,000 $480.000 $325.000 $1.90.000 Total red taborost $400.000 $150 000 $60.000 5610.000 Alocated MOH Setup of machines 35 Ding 36 Assembly ST Inection Total Allocated MOH Overhead application rate for machine setup Overhead application rate for drilling Overhead appliation rate for assembly Overhead application rate for inspection Tell me what you want to do Total Costs 61 3 Average cost peront 61 6 Part 4 Assume your company decided to use direct labor hours as the cost driver to locate manufacturing overhead costs to units produced (part 1) Using directieboe hours to allocate overtread means that your company decided not to use machine hours part 2) or activity based costing (ABC) (part) 57 ped your company choose the best approach to allocate manufacturing overtred costs to determhe total tests and cost per unit? why or why not? write a short paragraph to explain