Drippin' in Heat manufactures the finest formal wear west of the Mississippi. The company produces two...

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Drippin' in Heat manufactures the finest formal wear west of the Mississippi. The company produces two main products: Suit Jackets and Sport Coats Cumenty the company uses a traditional overhead rate in which Manufacturing Overhead is allocated to products based on direct labor hours logged. The projected production levels for the period are 1,200 Suit Jackets and 400 Sport Coats Due to profitability concems, management is considering switching to Activity-Based Costing (ABC). Management has divided manufacturing overhead costs into three activities and cost pools: Assembly $30,000: Machine Setup $20,000, and Product Movement $102,400. Management has identified the following cost drivers for each overhead activity direct labor hours for assembly, number of setips for machine setup, and number of moves for product movement. The following information has been compiled for each product line: Direct Labor Requirements Machine Setup Requirements Product Movement Requirements Suit Jackets 0.5 DL Hour per unit 1 Setup per every 15 units produced Sport Coats 1.0 DL Hour per unit 1 Setup for every 20 units produced Move per every 25 units produced 1 Move per every 25 units produced Question 1: Using the above information, determine the per-unit amount by which the Suit Jacket product line is overcosted undercosted by the current cost system. OA. $48.40 overcosted OB. $48.40 undercosted C. $16.13 undercosted OD. $16.13 overcosted OE. None of the above Question 2: Assuming the company marks up costs 75% to determine sales price, the Sport Coat line is being A. Overpriced COB. Underpriced C. Nether Drippin' in Heat manufactures the finest formal wear west of the Mississippi. The company produces two main products: Suit Jackets and Sport Coats Cumenty the company uses a traditional overhead rate in which Manufacturing Overhead is allocated to products based on direct labor hours logged. The projected production levels for the period are 1,200 Suit Jackets and 400 Sport Coats Due to profitability concems, management is considering switching to Activity-Based Costing (ABC). Management has divided manufacturing overhead costs into three activities and cost pools: Assembly $30,000: Machine Setup $20,000, and Product Movement $102,400. Management has identified the following cost drivers for each overhead activity direct labor hours for assembly, number of setips for machine setup, and number of moves for product movement. The following information has been compiled for each product line: Direct Labor Requirements Machine Setup Requirements Product Movement Requirements Suit Jackets 0.5 DL Hour per unit 1 Setup per every 15 units produced Sport Coats 1.0 DL Hour per unit 1 Setup for every 20 units produced Move per every 25 units produced 1 Move per every 25 units produced Question 1: Using the above information, determine the per-unit amount by which the Suit Jacket product line is overcosted undercosted by the current cost system. OA. $48.40 overcosted OB. $48.40 undercosted C. $16.13 undercosted OD. $16.13 overcosted OE. None of the above Question 2: Assuming the company marks up costs 75% to determine sales price, the Sport Coat line is being A. Overpriced COB. Underpriced C. Nether