Problem 2 - Overhead Allocation (24 points) Della Lishus owns and operates Della Lishus Cakes, Inc. Della Lishus Cakes makes specialty cakes for Weddings and Birthdays. Her business has 2 departments: The Baking Department and the Decorating Department. Her budget for 2018 indicates the following: Department Activity Overhead Cost Driver Quantity Baking Measuring $20,000 # of ingredients Mixing $16,000 Machine hours 2,300 $36,000 125 Decorating Mixing Application $14,400 $ 4,400 Machine hours $10,000 Direct Labor Hours 2,300 18,000 Additional production information follows: Birthday Cakes Wedding Cakes 374 96 80 45 Units produced # of ingredients Machine hours Direct Labor hours 1.098 6,440 1,202 11,560 Calculate the following overhead allocations on the next page: 1. Using the plantwide overhead rate based on Direct Labor Hours, calculate the overhead cost assigned to each birthday cake and each wedding cake. 2. Using ABC, calculate the overhead assigned to each birthday cake and each wedding cake. Round all per unit calculations to the nearest penny, round all other calculations to the nearest dollar. Problem 2 - Overhead Allocation (24 points) 3. Using the plantwide overhead rate based on Direct Labor Hours, calculate the overhead cost assigned to each birthday cake and each wedding cake. Plantwide overhead rate: per DLH Birthday Cakes Wedding Cakes 4. Using ABC, calculate the overhead assigned to each birthday cake and each wedding cake. Baking: Measuring: Mixing per ingredient per machine hour Decorating Mixing: Application: per machine hour per direct labor hr Birthday Cakes Wedding Cakes Baking Department: Measuring Mixing