Dubai Industrial Company manufactures two products: Polyester and Nylon. Management believes that the accounting system is not accurately allocating costs to products, and has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their machine hours. You have the following data: Polyester Nylon Total Direct Material AED 534,000 678,000 1,212,000 Direct Labor 440,000 528,000 968,000 Manufacturing Overhead 862,000 No. of units produced 22,042 units 28,000 units 50,042 units Management has determined that overhead costs are caused by three cost driver Las follows: Cost Driver Activity Measure Costs Assigned Polyester Nylon Total 2 Management has determined that overhead costs are caused by three cost drivers as follows: Cost Driver Activity Measure Costs Assigned Polyester Nylon Total Machine AED 240,000 1,200 1,800 3,000 Number of machine Processing Production hours Number of orders AED 316,200 140 200 340 Orders Shipments AED 305,800 80 120 200 Number of shipments Total MOH AED 862,000 Required. (Show all calculations in details and explain your answers where needed) 22 3 Required. (Show all calculations in details and explain your answers where needed) 1. If the company uses the ABC costing system and the three cost drivers are used to allocate overhead allocate the manufacturing overhead costs: A- How much overhead will be assigned to each product? (15 marks) B- What is the total cost per unit produced for each product? (10 marks) 2. If the company allocates the manufacturing overhead costs by the machine hours: A- How much manufacturing overhead will be assigned to each product? ( 5 marks) B- What is the total cost per unit produced for each product