Overhead Rate for Multiple Products and Over Under-Absorbed Overhead DigitalEar invented and patented a new digital behind the ear hearing aid with adaptive noise reduction and automatic feedback cancellation. DigitalEar produces four offerent models of its Ove The following table summarizes the planned production levels, costs, and selling prices for the four DigitalEar devices for this year Budgeted production and sales (units) Selling price Direct labor (OL) hours per unit Direct material per unit Direct labor cost (wages, benefits, and payroll taxes) per 0 hour Digital far Hearing Aid Models A21 12,000 6,000 5,000 3,000 $ 500 $600 $700 $1,000 2.0 2.8 3.0 3.5 110 120 130 150 $ 25 $ 25 1 25 5 25 DigitalEar allocates both fixed and variable manufacturing overhead to the four devices using a single overhead rate, which includes both fixed and variable manufacturing overhead. The number of deact labor hours in each device is used as the allocation base for assigning overhead to hearing ads Budgeted volume measured using direct labor hours is calculated using the budgeted sales of each device Varable manufactung overhead is budgeted at $12.00 per direct labor hour and fed manufacturing overheads budgeted the year at $2.157000 Required a. Calculate Digtiar's budgeted manufacturing overhead b. Using absorption costing, calculate the budgeted manufactur c. During the year, actual manufactunnig overhead incuted foxed pus Actual direct labor hours dvect labor hour for this year und for each of Digtalars four hearing aid devices was $310,000, and the actual number of direct labor hours used producing the four hearing als was 26,000 23,800 18,000 12,250 Calculate the over- or under-absorbed overhead Digitaal for this year d Assuming that the entire over or under-absorbed ovemeart you calcidated in part id is weten off to cost of goods sold, does this wite-off increase or decrease net income before saves Explan