Ellis Perry is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced Direct labor hours required for production Units per batch Shipping weight per unit 15,000 15,000 3,000 0.5 lbs 2,000 14,000 50 4 lbs The company incurs $899,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. Required a. How much overhead will be allocated to each product using the traditional direct labor hours allocation base? What overhead cost per unit will be allocated to each product? Here's one way you could solve this problem: The company incurs $899,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours Required a. How much overhead will be allocated to each product using the traditional direct labor hours allocation base? What overhead cost per unit will be allocated to each product? Here's one way you could solve this problem: Overhead Rate Estimated Overhead Estimated Cost Driver (Figure] (Figure] [Formula) Total overhead to product Number of units produced = Overhead per unit AM-2 [Formula) [Figure] [Formula) FM-9 [Formula) [Figure) Formula) b. Assume that Ellis Perry has identified three activity cost pools. Pool Cost Cost Driver Assembly $638,000 Direct labor hours Setup 121,500 Number of setups (1 per batch) Packaging 139,500 Weight Given these activity pools and cost drivers, how much overhead should be allocated to each product? What overhead cost per unit will be allocated to each product? Solve AB c. Explain the change in overhead costs per unit