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Exercise 4-4 (Algo) Contrast ABC and Conventional Product Costs [LO4-4] Pacifica Industrial Products Corporation makes two products. Product H and Product L. Product H is

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Exercise 4-4 (Algo) Contrast ABC and Conventional Product Costs [LO4-4] Pacifica Industrial Products Corporation makes two products. Product H and Product L. Product H is expected to sell 39,000 unts next year and Product L is expected to sell 7.800 units. A unit of elther product requires 03 direct labor-hours The company's total manufacturing overhead for the year is expected to be $1,193,400 Required: 1.a. The company currently applies manufacturing overhead to products using direct iabor-hours as the allocation base if this miethod is followed, how much ovethead cost per unit would be applied to each product? 1.b Compute the total amount of overheed cost that would be appiled to each product 2. Management is considering an activity-based costing system and would like to know what impsct this change mogr have on product costs For purposes of discussion, it has been suggested that all of the manufacturing oveshead be treated as a productiever cost. The total manufacturing overhead would be divided in hair between the two products with $596700 essigned to Product H and $596700 assigned to Product L Complete this question by entering your answers in the tabs below. cost: I he total manutacturing overhead would be divided in halt between the two products, with $596,/00 assigned to Product H and $596,700 assigned to Product L If this suggestion is followed, how much overhead cost per unit would be assigned to each product? Complete this question by entering your answers in the tabs below. Management is considering an activity-bused costing system and would like to know what impact this change might have on product costs. For purposen of discussion, it has beten suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in balf between the two products, with $596,700 assigned to Product H and 5596,700 assigned to product L. If this suggestion is followed, how much overhead cost per unit would be assigned to each product? (Round your ariswers to 2 decimar procese)

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