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Problem 5-54 Plantwide versus Departmental Rates, Product-Costing Accuracy: Activity-Based Costing Ramsey Company produces speakers (Model A and Ntodcl B). Both products pass through two producing departments. Model A's production is much morc labor-intcnsivc than that of Model B. Model B is also thc morc popular of thc two speakers. following data have bccn gathcrcd OBJECTIVE EXCEL for thc two products: Units produced per year prime COSI S Direct labor hours hours Production runs Inspection hours Main ten ancc hours Scrup costs n costs Machining Total Required: Product Data 10,000 $150.000 20,000 40 10.000 $270,000 210.000 270.000 990,000 100,000 $1.500.000 60 1.200 , Compute thc overhead cost per unit for each product by using a plantwide ratc based on direct labor hours. (Note. Round to two decimal places.) 2. Compute the overhead cost per unit for each product by using ABC (Note: Round rates and unic overhead cost to two decimal places.) 3. Suppose that Ramsey decides to use departmental overhead rates. are two departments: Department I (machine intcnsivc) with a ratc of per machine hour and Dcpartmcnc 2 (labor intensive) with a ratc of SO. 90 per direct labor hour. Thc consumption of thcsc two drivers is as follows: Model B Department I Machine Hours 10.000 170,000 Department 2 Direct Labor Hours 130.000 270000