Part $1$ Given the following information, what is the predetermined overhead rate per unit using direct labor hours as an application base? And what is the contribution margin per unit if overhead is applied using expected direct labor hours as a base? Data: Sales price per unit.....................$$500$ Direct materials per unit...............$$150$ Direct labor per hour....................$$25$ Direct labor hour needed per unit...$\mathrm{.}2$ hours Number of units to be produced....$\mathrm{.}50,000$ Total estimated OH$..................$$$250,000$ Part $2$ Continuing with this same scenario, assume that the following activities incur various OH costs: Cutting...................$$100,000$ based on $80,000$ cuts Assembly................$ $75,000$ based on $160,000$ parts Inspection................$$25,000$ based on $1,000$ inspections What would the Contribution margin per unit be$,$ given the information above $($and below$)$ using ABC? Sales price per unit.....................$$500$ Direct materials per unit...............$$150$ Direct labor per hour....................$$25$ Direct labor hour needed per unit...$\mathrm{.}2$ hours Number of units to be produced....$\mathrm{.}50,000$ Total estimated OH$..................$$$250,000$ Cutting necessary.....................$\mathrm{.}2$ cuts needed per unit Assembly...............................$\mathrm{.}4$ assembly parts per unit Inspection..............................$\mathrm{.}1$ inspection per unit