I need help with steps 2-7 and show work pls.

002 00012 boder von CASE FACTS: Zeus Opticals is a specialist manufacturer of optical instruments. Zeus has recently expanded its core product market of binoculars into making eyepieces for microscopes / telescopes, and screw-on lenses for digital SLR cameras. The firm believes that it makes little money selling binoculars and that these new markets have great profit potential. Somewhat to Zeus's surprise, it finds it tough to make money with eyepieces. As of now, the firm is selling the product at a negative profit margin. Yet, Zeus faces intense price pressure in this segment, and thinks that it might have to lower prices by 5% or more to stay competitive. The market for binoculars has been stable for several years, and Zeus expects the trends to continue for the near future. Zeus is most excited about entering the market for screw-on lenses for digital SLR cameras. Although current volumes are small (relatively), Zeus believes that there is substantial market potential for this product. Leveraging its excellent reputation for optics and lenses, Zeus believes that it could reach and sustain two times the current volume of this product. This strategy also seems to make sense financially as this product looks like the most profitable of the three lines, per the firm's accounting records. Eyepieces Sales volume (units) 24,000 Price $64.00 Unit Variable Costs of Licensing & Patent fees 8.00 Unit Variable Cost of Direct Labor & Materials 40.00 Unit Contribution Margin (before overhead) $16.00 Unit Profit Margin After Deducting Overhead ($5.00) Binoculars Camera Lens 21,000 7,000 $80.00 $150.00 20.00 25.00 32.00 80.00 $28.00 $ 45.00 $1.75 $10.00 1.2 1.5 2.0 Labor hours / unit The unit contribution margin is computed by subtracting the units cost of licensing and patent fees and direct labor and materials from the selling price. OD Currently, the firm incurs $1,300,250 in overhead costs annually. It allocates this overhead among product lines using the number of labor hours used by each product line. bet 101 old nedelupoided shodom Zeus' management realizes that moving to camera lenses is a major shift in their product and market focus. Plus, they know that factory personnel have complained about the increased coordination required for producing lenses. Thus, management wants us to conduct a more detailed study of product costs. We collect the following data. Eyepieces Binoculars Camera Lens Sales volume (units) Machine hours batch size # of batches # of Components in each unit of product # of receiving transactions 24,000 2,400 2,000 12 2 15 21,000 6,000 1,400 15 6 35 7,000 8,000 500 14 20 50 Analyzing the overhead, you discover the following: Item Amount Labor related $302,200 Machine related 352,600 Production order 98,650 First part inspection 75,470 Yoga Parts administration 167,500 Inventory management 140,000 Receiving and shipping 57,450 General administration 106,380 Total $1,300,250 You are wondering how best to allocate these costs into cost pools. You settle on forming a total of six pools Pool 1: Labor related costs. Experience shows that for Zeus Optical direct labor hours is what drives these costs and causes them to vary. q namin Pool 2: Machine related costs. These are driven by machine hours Pool 3: Cost related to executing a production order (this would include production orders and first part inspections), allocated using the number of batches Pool 4: Related to parts administration, which will be allocated based on the number of components in each product Pool 5: Costs related to inventory management, receiving and shipping These costs are allocated using the number of transactions per product line (components * number of transactions). Pool 6: Facility level costs allocated equally among the 3 product lines. Requirements of parts B to G. Nowe use activity base costing: B. Summarize the total amounts in each of the six cost pools and then divide by the cost driver activity (from the data we collected) to determine the per driver unit for each cost pool (except the facility level cost pool has no cost driver so it will not be allocated) Step 1. Total amounts in the 6 cost pools. In some cases you need to add several numbers. In other cases it is just the given number Labor related costs - $302, 200 Machine related costs = $352, 600 Production order related costs Total inventory, receiving and shipping - 3197, 450 Parts administration Facility level - $106, 380 Step 2. Rate per driver unit for Labor related costs (pool 1) 302, 200_divided by 103, 100 -$174, 120 - 3167,500 Step 3. Rate per driver unit for Machine related costs (pool 2) 352, 600 divided by 16, UDD Step 4: Rate per driver unit for Production order related costs (pool 3) 174, 120 divided by ul Step 5: Rate per product line for parts administration (pool 4) 167,500 divided by Step 6: Rate per driver unit for Inventory, receiving, shipping costs (pool 5) 197,450_divided by Step 7: Rate per product line for facility level costs (pool 6) : 70 A. Required for part Determine the overhead allocation rate which Zeus is currently using to assign overhead costs and then calculate the total cost per unit using that rate. (Hint: if you have done this correctly, then the Price minus the Total Unit Cost should equal the profit per unit reported above for each of the 3 products) Step 1. Total direct labor hours producing eyepieces? 22 24,00 28,800 Step 2. Total direct labor hours producing binoculars? 21, UUD 31,500 Step 3. Total direct labor hours producing camera lens? 7,000 M,000 Step 4: Total direct labor hours producing all 3 products 22,200 + 31,500 + 14.000 - 103, 100 Step 5: Overhead rate per direct labor hour: 1.200, 250 divided by _103, 100_." Step 6: Overhead per unit for eyepieces 74,000 X 1.6 302, you Check your answer by subtracting it from the contribution margin per unit. You should get the profit margin per unit Step 7: Overhead per unit for binoculars 21,000 X 12.6 264, 600 Check your answer by subtracting it from the contribution margin per unit. You should get the profit margin per unit Step 8 Overhead per unit for camera lens 7.000 12.6 28,200 Check your answer by subtracting it from the contribution margin per unit. You should get the profit margin per unit