Fett Electronics manufactures two large-screen television models: the Boba, which sells for $1,200, and a new model, the Jango, which sells for $900. The direct production costs for each model, as well as number of units produced, are presented below. Boba Jango Direct Materials $600 $320 Direct Labor ($20 per hour) $100 $80 Units Produced 20,000 10,000 Overhead, totalling $4,900,000, is currently allocated on the basis of direct labor hours. Management aims to have a 30% gross profit margin on each of its products, and is concerned about the profitability of the Boba model. Fett's controller accumulated the following information about overhead for the year: Cost Overhead Item Purchasing Machining Quality control $1,380,000 $3,100,000 $420,000 Cost Driver Number of purchase orders Number of machine hours Number of direct labor hours Cost Driver Purchase orders Machine hours Direct labor hours Boba 21,620 40,000 100,000 Jango 24,380 60,000 40,000 Total 46,000 100,000 140,000 a) Calculate the OH Rates using the ABC system. b) Determine the cost per unit and unit gross margin for each model using ABC. c) Using the information from the ABC analysis, what should Fett do? Propose two alternative