PA9 LO 6.4 Carlton's Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30,000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60.000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown Machine setups Machine processing Material requisitions Total overhead $ 900,000 4.000.000 100,000 54.190.000 The cost driver for each cost pool and its expected activity is shown Machine setups Machine hours Parts requisitions Strands 100 140,000 Shapes 200 60,000 120 Total 300 200,000 200 80 A What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing? C. Compared to ABC costing, was each product's overhead under- or overapplied? D. How much was overhead under or overapplied for each product? PA10 LO 6.4 Carlton's Kitchen's three cost pools and overhead estimates are as follows Activity Cost Pool Machine setups Assembly Machine maintenance Cost Driver Setups Number of parts Machine hours Estimated Overhead $128,000 105,000 150,000 Use per Product A 5,000 25,000 12,500 Use per Product B 3,000 45,000 37,500 Compare the overhead allocation using A The traditional allocation method B. The activity-based costing method (Hint the traditional method uses machine hours as the allocation base)