Q: Philips Company manufactures a variety of high- and low-volume products, including product 456, in its Westchester Plant. The following information pertains to the most recent year:

	Total for product 456	Total for Westchester
Unit-level overhead		$200,000
Batch-level overhead		300,000
Product-level overhead		500,000
Plant-level overhead		400,000
Total overhead		$1,400,000
Units produced	100	5,000
Direct labor hours	200	20,000
Machine hours	90	10,000
Setups	6	120
Setup hours	30	500
Design changes	4	40
Design hours	280	4,000

REQUIRED:

(1) If the Westchester Plant accumulates all overhead in a single cost pool and allocates it on the basis of machine hours, how much overhead cost will be allocated to a unit of Product 456?

(2) If the Westchester Plant uses ABC with setups as the driver for all batch-level overhead, design hours as the driver for all product-level overhead, and machine hours as the driver for all unit- and plant-level overhead, how much overhead cost will be allocated to a unit of Product 456?