Plyler Plastics Company produces a variety of custom plastics products for a worldwide clientele. The company's cost accounting manager, Martha Johns, is beginning to implement an activity-based costing system and has gathered data on the quality inspections activity. She is unsure what the most appropriate driver is for this activity cost pool, but she is considering number of units produced, number of batches produced, machine hours, and direct labor hours. She has gathered weekly information for the past two years and has asked you to help her determine which activity driver to select. Click here to view the data in Excel. (b) Using Excel's CORREL formula, determine the correlation between each activity driver level and the inspections cost. (Round answers to 3 decimal places, e.g. 52.752. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Correlation Units produced Machine hours Batches Direct labor hours Problem 7-21 - Comparing traditional and ABC costs Name: Course: Date: Ellis Perry is an electronics components manufacturer. Information about the comparty's two products follows: 15.000 15.000 2.000 Units produced Direct labor hours required for production Units per batch Shipping weight per unit 0.5lbs The comparty incurs $899,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. Required How much overhead will be allocated to each product using the traditional direct labor hours allocation base? What overhead cost per unit will be allocated to each product? Here's one way you could solve this problem: Overhead Rate Estimated Overhead Estimated Cast Driver Fique) Formula] Figure) AM2 FM-9 Total overhead to product Number of units produced - Overhead per unit Formula) Figure] Formula Formula Figure] Formula Or solve your own way b. Assume that Ellis Perry has identified three activity cost pools. Assembly Setup Packaging Cost 9838.000 121,500 139,500 Cost Driver Direct labor hours Number of sups (1 per batch) Weight