Koontz Company manufactures two models of industrial components-a Basic model and on 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 the allocated selling and administrative expenses to products based on sales dollars] Advanced Total Number of units produced and sold 10 0 # 2.000,060 $ 5.640,040 Cost of goods sold 1,350,060 Gross margin 650,20 1,150,0 Selling and addalucrative expenses Net operating income (loss) $ 170 0 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: Atumble and Molding Pack Total Manufacturing overhead costs $ 787, 580 $ 562, 980 $ 1,350,080 Direct labor hours: Basic 10,010 Advanced Machine hours: Advanced 10,040Required: 1. Using the plantwide approach: a. Calculate the plantwide overhand rate. b. Calculate the amount of overhead that would be assigned to gach product. 2 Using a departmental approach: a. Calculate the dopormental overhood rates. b. Calculate the total amount of overhead that would be orsigned to each product. c Using your departmental overhead cost allocations, redo the controller's segmented income statement (continue to allocate selling and administrative experien bored on sales dollars 3. Koontz's production manager has suggested using activity bused costing inweed of either the plantwide or doporummercal approaches. To facilitate the necessary calculations. she assigned the company's total manufacturing overhead cost to five activity cost pools as follows: Manufacturing Activity Cost Pool Activity Nature Machining Muchlee -hours In Holding Assemble and pack Mrect Labor-Jours In Assemble and Back Order procrising Number of customer orders Setup hours Other (unused capacity) She also determined that the average order size for the Basic and Advanced models Is 400 units and 50 units. respectively The molding machines require a setup for such order One setup hour is required for each customer order of the Basic model and three hours are required to setup for an order of the Advanced model The company pays a soles commissions of 5% for the Basic model and 10% for the Advanced model. his traceable foord advertising costs Include $150,000 for the Basic model and $200,000 for the Advanced model The remainder of the company's selling and administrative costs are organization sustaining in nature. Using the additional Information provided by the production manager, calculate: 3. An activity rate for such activity cost pool b. The total manufacturing overhead cost allocated to the Basic model and the Advanced model using the activity based approach. The total selling and administrative cost traced to the Basic model and the Advanced model using the activity-based approach. 4. Using your activity-based cost assignments from requirement 3. prepare a contribution format segmented Income statement that is adopted from Exhibit 6 8. (Hint Organize all of the company's costs into three coxgones! variable expenses, traceable fixed expenses, and common fixed expencory 5. Using your contribution format segmented income statement from requirement 4. calculate the breck-avon point in dollar sales for the Advanced model.Complete this question by entering your answers in the tabs below. Reg 14 Reg 24 Reg 20 Reg XC Beg JA Reg 30 Reg Beg 5 Calculate the plantwide everhand rows. ( Reg LA