Question 1: If Crazy Crayons Inc. assigns overhead costs using the direct labor as the cost driver and the overhead rate of 242%, how much overhead will be allocated to each type of crayon? What is the gross margin ratio for each of type of crayon? BROWN $30,000 $6,000 $7,000 BLACK $24,000 $4,800 $5,600 PURPLE $3,960 $720 RED $2,800 $520 $560 TOTAL) $60,760 $12,040 $14,000 $840 Sales Direct Materials Costs Direct Labor Overhead at 242% of DL costs Gross Margin Gross Margin Ratio (% of Sales) Question 2: How would you respond to Karen's argument that Crazy Crayon Inc. should not attempt to allocate shared overhead? Would the costing system proposed by Mr. Myerson greatly improve the accuracy of the product costs