Exercise 17-16 Comparing costs under ABC to traditional plantwide overhead rate LO P1, P3, A1, A2 Smythe Crystal makes fine tableware in its Ireland factory. The following data are taken from its production plans for the year. Direct labor costs Setup costs 5,570,000 620,000 Expected production Direct labor hours required Machine setups required Wine Glasses 208,000 units 272,000 DLH 700 setups Commemorative Vases 18,000 units 15,800 DLH 800 setups Required: 1. Determine the setup cost per unit for the wine glasses and for the commemorative vases if setup costs are assigned using a single plantwide overhead rate based on direct labor hours. Activity Product Wine Glasses Driver Units Produced OH Cost per unit Overhead Rate 0.00 0.00 Total Overhead Cost Vases 2. Determine setup costs per unit for the wine glasses and for the commemorative vases if the setup costs are assigned based on the number of setups. 01 Product Units Produced OH Cost per unit Driver Wine Glasses Overhead Rate 0.00 0.00 Total Overhead Cost 0 Vases 3. Which method is better for assigning costs to each product? O Assignment based on direct labor hours Assignment based on the number of setups