icipated demand for the upcoming month, Sigma Company plans to rent $3$

machines, each costing $$50,000$ per month, and hire $4$ indirect workers, each costing $$4,810$

per month. The total cost of the $3$ machines and $4$ indirect workers comprises the total

overhead cost at Sigma Company.

Round intermediate calculations to two decimals.

a$)$ Given the production plan, what is the deluxe product's total contribution margin?

Round answer to nearest dollar.

$Answer $1$

$69,600$

b$)$ If Sigma Company computes a plantwide rate to allocate total overhead cost to the three

products by dividing the sum of indirect labor cost and machine cost by planned total direct

labor hours, what is the total overhead cost that will be allocated to the deluxe product, and

what will be its resulting gross margin? Round answer to nearest dollar.

Total overhead cost? $Answer $2$

$29,592$

Resulting gross margin? $Answer $3$

$40,008$

c$)$ If Sigma Company uses TDABC to allocate the indirect labor cost and the machine cost

to the three products, what will be the total overhead cost allocated to the deluxe product,

and what will be its resulting gross margin? Round answer to nearest dollar.

Total overhead cost? $Answer $4$

$29,852$

Resulting gross margin? $Answer $5$

$176,913$