Question 1: Nabors Company produces two types of stereo units: deluxe and regular. For the most recent year, Nabors reports the following data: Expected overhead (expected to spend) pected activity (in direct labor hours) Actual activity (in direct labor hours) Actual overhead (actuallv spent) $180,000 50,000 51,000 The cost information is given below: Deluxe Stereo Regular Stereo Prime Costs Direct Labor Hours S40,000 5000 $300,000 46000 Nabors Company allocates overhead costs based on the labor hours consumed by each department. You are required to calculate a. b. c. What was the overhead allocation for the Deluxe Department. Did Nabors overapply or underapply the overheads? Calculate the per-unit cost of each type stereo. (Hint: Calculate the allocation rate first using the Budgeted Overhead and Expected Activity. Use that rate to find how much did the company ended up applying, then compare with the amount spent)