Estimated Overhead Costs by Estimated Direct Labor Hours & Department Machine Hours by Department 150,000 hrs 125,000 hrs 00 Finishing 100,000 hrs - 100,000 75,000 hrs 70,000 Total: $8,000,000 Assembly OT Assembly 50,000 hrs Assembly 25,000 hrs - 25100D Finishing 30,000 Finishing Direct Labor Hours Machine Hours Estimated Overhead Costs by Cost Driver & Expected Usage Activity by Activity Supervision Maintenance Supervision 000 95 DLO machiners moi 100,00 100,000 Total: $8,000,000 ce 2. The company's XL model requires 2 direct labor hours and 1 machine hour. The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager p e RD production manager prefer? Required 2A Required 28 Required 3 Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Model Activity Driver Plantwide OH Rate OH Cost Per Unit DLH DLH RD Required 2A Required 2B Required 3 Compute the overhead cost per unit of each model using ABC. RD Activity Activity Driver Incurred Overhead Assigned Activity Driver Incurred Overhead Assigned Activity Rate per MH per DLH Maintenance Supervision Overhead Cost Per Unit MH DLH DLH 60 Required 2A Required 28 >