EasyBake Co. creates countertop ovens so easy and safe to use a kid could figure it out! EB Co. has noticed one particular product line is ready for expansion when allocating costs as per the simple method. EB Co. allocates OH using direct labour hours, as each oven is manufactured manually. EB Co. has contacted you to take a look, and let them know if the success of "SweetyPie"'s line is true, or inaccurate OH allocation.

Sweetie Pie DM per unit $100, DL Hrs per unit 8, Units made 2,000. For 60 units made, a quality check is needed. Design hours are 4 for the line

Meatie Pie DM $50 per unit, DL Hrs 4 per unit, 1,000 units produced. For 80 units made, a quality check is needed. Design hours are 2 for the line

OH total $1M and DL per hour is $25. Quality checks are $400,000; Design hours $100,000 and Distribution $350,000, Misc. $150,000.

	SweetyPie	MeatyPie
Sales price	$ 800	$ 500
simple cost per unit
Profit per unit
What do we do?
	SweetyPie	MeatyPie
Sales price	$ 800	$ 500
ABC total cost per unit
Profit per unit
What do we do?