Management is considering an ABC system, where HALF of the overhead would be based on DL hours and half would be allocated 2 based on engineering design time. The engineering design time in hours has been added to the information below. Here are step by step instructions: 1 2 53 54 55 66 67 68 1st. Estimated overhead for each POR will be $175,000 ($350,000+ 2) 2nd Calculate TWO POR's. One based on DLH and one based on the engineering design time. 3rd. Using these two POR's apply the overhead based on use (note this will be total OH applied and will need to be unitized) 4th. Assign total overhead to each product (note this will be total OH applied and will need to be unitized) NOTE: you'll take total OH assigned and divide by the number of units produced to determine the amount of OH to apply 69 70 71 72 Using ABC, compute the two POR's and then the unit product cost for Red Towels and Blue Towels Red Towels Blue Towels Total $ 10.00 $ 3.00 $ 0.2 DM per unit DL per unit (a) DL hours per unit (b) Number of units produced Total Estimated DL Hours for period (a*b) Engineering design time in hours TO DO-replace the Question marks below with the correct answer POR using revised estimated DL Hours (only 1/2 of the OH used) POR using Engineering Design Time Unit product cost DM DL Applied Overhead: $ Cost per unit using ABC Red Towels ? Red Towels's OH Blue Towels's OH 15,000 3,000 4,000 Total Unit Product Cost ? 12 2 ? ? 40,000 10,000 3,000 ? 12.00 22 3.75 Blue Towels ? 2 0.25 13000 7000 Here's total DLH Here's total engineering time +

Management is considering an ABC system, where HALF of the overhead would be based on DL hours and half would be allocated based on engineering design time. The engineering design time in hours has been added to the information below. Here are step by step instructions: 1st. Estimated overhead for each POR will be $175,000($350,000+2) 2nd Calculate TWO POR's. One based on DLH and one based on the engineering design time. 3rd. Using these two POR's apply the overhead based on use (note this will be total OH applied and will need to be unitized) 4th. Assign total overhead to each product (note this will be total OH applied and will need to be unitized) NOTE: you'li take total OH assigned and dlvide by the number of units produced to determine the amount of OH to apply Using ABC, compute the two POR's and then the unit oroduct cost for Rad Towole and Plue Towalc TODO- replace the Question marks below with the correct answer Management is considering an ABC system, where HALF of the overhead would be based on DL hours and half would be allocated based on engineering design time. The engineering design time in hours has been added to the information below. Here are step by step instructions: 1st. Estimated overhead for each POR will be $175,000($350,000+2) 2nd Calculate TWO POR's. One based on DLH and one based on the engineering design time. 3rd. Using these two POR's apply the overhead based on use (note this will be total OH applied and will need to be unitized) 4th. Assign total overhead to each product (note this will be total OH applied and will need to be unitized) NOTE: you'li take total OH assigned and dlvide by the number of units produced to determine the amount of OH to apply Using ABC, compute the two POR's and then the unit oroduct cost for Rad Towole and Plue Towalc TODO- replace the Question marks below with the correct