Koontz Company manufactures two models of industrial components-a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz's controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Number of units produced and sold Sales Cost of goods sold Book Gross margin: Selling and administrative expenses Net operating income (loss)) Print rences Basic 20,000 $3,000,000 Advanced 10,000 $2,000,000 Total 30,000 $ 5,000,000 2,300,000 700,000 3,650,00 1,350,000 1,200,000 720,000 5 (20,000) 1,350,000 650,000 480,000 $170,000 $ 150,000 Direct laborers are paid $20 per hour Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental approach. The overhead costs in the company's Molding Department would be allocated based on machine-hours and the overhead costs in its Assemble and Pack Department would be allocated based on direct labor-hours. To enable further analysis, the controller gathered the following information Basic Manufacturing overhead costs Holding 5787,500 Direct labor hours Assemble and Pack $562,580 Total $1,350,000 10,000 20,000 10,000 5,000 10,000 15,000 12,000 12,000 10,000 10,00 Advanced Machine hours Basic Advanced Required: 1. Using the plantwide approach a. Calculate the plantwide overhead rate b. Calculate the amount of overhead that would be assigned to each product 2. Using a departmental approach a. Calculate the departmental overhead rates b. Calculate the total amount of overhead that would be assigned to each product