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The controller has asked you to compare plant-wide, department, and activity-based cost allocation. Tribute Budgeted Information for the Year Ended November 30, 2017 Forming Department Basic Deluxe Total Direct materials 26,000 $ 23,000 $ 49,000 Direct manufacturing labour 32,300 7,700 40,000 Overhead costs Setup 50,950 General overhead 22,400 Assembly Department Basic Deluxe Total Direct materials 5,100 $ 23,400 $ 28,500 Direct manufacturing labour 15,600 20,400 36,000 Overhead costs General overhead 64,8001. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plant-wide overhead rate if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labour cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates where forming department overhead costs are allocated based on direct manufacturing labour costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labour costs of the assembly department. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Tribute allocates overhead costs in each department using activity-based costing where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labour costs of each department. 4. Explain briefly why plant-wide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why?Tribute Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Tribute does large custom orders. Tribute budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, setup and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50. (Click the icon to view budgeted information.) Required Requirement 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plant-wide overhead rate if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labour cost in your unit cost calculation.) Start by calculating the total direct costs for the basic and deluxe trophies departments. Basic Deluxe Total Direct materials Forming Assembly Total direct materials Direct manufacturing labour Forming Assembly Total direct manufacturing labour Total direct costsNext, calculate the budgeted overhead rate for total overhead allocated based on total direct costs. First select the formula; then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent, $X.XX. Abbreviations used: DC = Direct cost, DL = Direct labour, $ = dollar.) = Budgeted overhead rate Finally, calculate unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, $X.XX.) Basic Deluxe Total Total direct costs Allocated overhead Total costs Unit cost Requirement 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates where forming department overhead costs are allocated based on direct manufacturing labour costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labour costs of the assembly department.Start by calculating the budgeted overhead rate for the forming and assembly departments based on direct manufacturing labour costs. First select the formula; then enter the applicable amounts and calculate the rates. (Round the budgeted overhead rates to the nearest cent, $XXX.) Budgeted overhead rate Forming Assembly Finally, calculate the unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, $X.XX.) Basic Deluxe Total Total direct costs Allocated overhead Forming Department Assembly Department Total costs Unit costRequirement 3. Calculate the budgeted unit cost of basic and deluxe trophies if Tribute allocates overhead costs in each department using activity-based costing where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labour costs of each department. Begin by calculating the budgeted setup rate for the forming department. First select the formula; then enter the applicable amounts and calculate the rate. (Round your answer to the nearest whole dollar. Abbreviations used: DC - Direct cost, DL = Direct labour, $ = dollar.) Budgeted setup rate Forming Now calculate the budgeted general overhead rate for the forming and the assembly departments. First select the formula; then enter the applicable amounts and calculate the rates. (Round your answer to the nearest cent, $XXX. Abbreviations used: DC - Direct cost, DL = Direct labour, $ = dollar.) Budgeted supervision rate Forming Assembly Now calculate the budgeted cost of basic and deluxe trophies if Tribute allocates overhead costs in each department using activity-based costing. (Round your answers to the nearest whole dollar.)Basic Deluxe Total Direct materials Direct manufacturing labour Total direct cost Allocated overhead: Forming department Setup General overhead Assembly department General overhead Total costs Finally, calculate unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, $XXX.)Basic Deluxe Total Total direct costs Allocated overhead Total costs Unit cost Requirement 4. Explain briefly why plant-wide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? As Tribute uses more refined cost pools, the costs of basic trophies and costs of deluxe trophies This is because trophies use a higher proportion of cost drivers. Direct costs are for deluxe trophies compared to basic trophies. This results in deluxe trophies being and basic trophies in the simple costing system. Tribute use the activity-based costing system because it helps managers The activity-based costing system is to understand which pricing, cost reduction, and design decisions