Question #3 The lead accountant has Overhead Costs the following data in ration for allocating overhead to three cost drivers Utilities Admin/MGMT $100,000 $200,000 Utilities (phone, electric, water, gas, etc.) CEO, VPs, Supervisors, Secretary staff costs Factory Costs $700,000 Building lease & equipment 1,000,000 (10) A. Allocate the $1,000,000 of monthly overhead costs to the following three cost drivers: 1) Units Produced 2) Direct Labor Hours 3) Raw Material Costs to determine the final product cost per unit (which includes Direct Labor, Raw Materials, and Overhead Labor Hrs Per Widget Direct Labor Cost per Widget Std Labor Rate (S/hr): $30.00 Widget-1 Widget-2 Widget-3 $120.00 $240.00 $360.00 12 Units Produced in Factory (all inclusive) 25,500 10,000 units per month Widget-1 Widget-2 15,000 units per month Widget-3 500 units per month Direct Labor Hours 166,000 Widget-1 40,000 hurs per month Widget-2120,000 hrs per month Widget-3 6,000 hours per month $25.00 50.00 $200.00 Raw Material Costs per unit of Widget-1 per unit of Widget-2 unit of Widget-3 (5) B. Which of the three methods causes the Final Product Cost of Widget-3 to exceed $700? In 30 words or less, why did this occur? (5) C. If the current sales price of Widget-3 is only $800, as the lead accountant, name at least TWO strategies you should consider to make Widget-3 a more viable product to sell/produce (increasing the sales price is not an option due to competitiveness of market)