PROBLEM 1 Solar-power, Inc manufactures solar-powered Sitter,' chargers for luxury boat and recreational vehicle manufacturers At present. company produces two models: Model S ("Standard"), which generates II watts peak power, and Model D ("Deluxe"), which generates 22 watts peak power and features an ammeter for monitoring charge rete and DC to AC inkrter_ Sales of Model S have been disappointing due to strong price competition. Model D, however, has been stunning sales success and Has Seen on backorder since its introduction vesr ago. Vinnie 'the Wessel" Santucci, the CEO of Solar-power, has interpreted this gles pattern as proof that the firm's competitive advents-e lies in producing the deluxe model. Accordingly, Vinnie plans to slow the production of Model S end use the resources freed up to produce more units of Model D. Vinnie's father-in-law, Tony "Big Tuna' Bianco, owns of the voting stock of Solar-power. He IS unsure of his son-in-law's business acumen and his daughter's teste in husband. Mn Bianco has engaged you as consultant to examine Solar-pcweis costing system to evaluate whether it can be relied upon to produce zccurste product cost data. You haue been provided with the following budgeted production and product cost data for the current year: # nf raduction runs Total units reduced nf components per model required for esch run Direct materials cost er u rut Direct labor hours er unit 20 er hour Direct labor cost er unit Total roduction overhead costs S 10 ooc Model D 2 coc s sco coc For simplicity, assume that budseted and capacit/ levels are the same (except for part belowL REQUIRED: I _ (4 points) Solar-power's existing cost svstem uses the overhead rate based on the number of 'total" direct Isbor Hours to assign production overhead costs to products. That is, thev allocate overhead costs Sased on the expected number of direct labor Hours using Soler-power's existing cost system, calculate the total overhead allocation and unit production cost for Model S and Model D. Total OH in Dirt materia 15 Dirt Unit Model S