problem 1 (7 Points) Seatle Grace Corporation manufactures two models of a medical device: Model 101 and Model 102 Below is the current year production data for the company Model 191 Model 102 Direct material in units Direct labor hours Machine hours Number of setups Number 97,000 113,000 30,000 40,000 26,000 13,000 600 6,000 ces produced , The 210,000 units of material had a total cost of $1,365,000. Direct labor is $17 per hour. The compary has total overhead production costs of $1,850,000. a. If Seattle Grace Corporation applies factory overhead using direct compute the total product cost and the unit product cost for each model. labor hours (traditional costing). b. Assume that Seattle Grace Corporation has established the following activity centers, costs drivers, and costs to apply factory overhead. Compute the total product cost and the unit product cost for each model. Cost Pool Cost Driver Cost Volume S585.000 $125,000 39.000 Equipment Maintenance Production Setup Material Handling Transportation Costs #Of machine hours # of setups Units of Materials #Of devices produced 900 $540,000 210,000 24,000 $600,000 C. How can such information benefit an organization? Page 2 of 3