During the first quarter of this year, production dramatically increased in all three of the product lines. The following table shows the drivers used by the three specialty lines during that quarter: Products Batches Machine Items Batches (Outputs) Setups Checked Hours Transported Produced Sculpted 563 300 750 60,938 15,000 Imprinted 1,406 338 500 158,438 16,875 Additive 844 113 1,250 24,375 5,625the direct materials and the direct labor, and we do a pretty good job of tracking those, so I won't deal with them in these notes. What allocation bases should we use? Well, I can't figure that out until I know what the overhead is and how we can break it down. Let's see. We have two departments. Last year's data are as follows: Department Drivers Used Total Overhead Pouring 25,000 $400,000 (driver: DL hours) Finishing 125,000 $800,000 (driver: batches completed) We will need the overhead amount of $1,200,000 from this table broken down more into actual activities and categories. Digging through the accounting records from last year, I was able to categorize the overhead costs as follows: Actual OH Costs Indirect salaries $474,000 Cleaning supplies $24,000 Shipping costs $180,000inking issues roblem #1 a. Assume that Wedgewood spends $3.38 in DM and $0.63 in DL for each sculpted candle. What is the total cost to produce one sculpted candle under the ABC system? b. Now do the same calculation under the departmental MOH allocation method used in Chapter 3. c. Which estimate do you believe is the most accurate? Defend your answer.system Q-3. Using the information compiled by Jordan about the drivers used by each specialty candle line, determine the amount of overhead that will be allocated to each line. 4 . Assuming that Wedgewood produced 180,000 sculpted candles; 202,500 imprinted candles; and 67,500 additive candles, how much MOH will be assigned to each candle under the ABC system