NO. 4 The Weekend Company produces two products, Saturday and Sunday, and uses a costing system that accumulates all overhead in a single cost pool and allocates it based on direct labor cost. Weekend's management has decided to implement ABC, having just finished a study that revealed significant amounts of overhead cost are related to setup activity and design activity. The number of setups and the number of design hours were selected as the activity drivers for the two new cost pools, and direct labor cost will continue as the base for allocating the remaining overhead. Information concerning Weekend Company's most recent year of operations is as follows: Units produced Direct material cost: Per unit Total Direct labor cost Setups Design hours Overhead: Setup related Design related Other Total overhead Saturday 73,500 Sunday 1,250 Total 74,750 P 16 200 P1,176,000 P250,000 P1,426,000 $2,100,000 $900,000 $3,000,000 30 12,000 30 3,000 60 15,000 300,000 900,000 3,300,000 $4.500.000 Required: a) Reconcile the costs reported for Sunday by the two costing systems. Use columns for total and per-unit. b) What percentage of Weekend's total overhead is treated differently by the two costing systems? c) What is the direction and percentage of distortion in the cost of product Sunday? ......END