Quick Sign Company produces and sells five (5) unique products- Beta, Gamma, Sigma, Alpha, and Omega.Management at Quick Sign Company decided to set the selling prices of these products at 18% above total per unit product costs, deeming that to be a fair and reasonable profit.Projected costs and planned volumes are provided at left.

Overhead costs are expected to be $13,250,000. Quick Sign President wanted to know each product's total costs in order to set the selling prices, so she needed some way of allocating overhead among the three products.Her Controller said that since volume (units produced) seemed to be related to the usage of productive capacity, it seemed fair to charge each product for its share of overhead according to the number of units produced of each product.The selling prices would then be based on each product's total cost, plus an 18% markup on costs.

a. What are the per unit allocations of overhead for each product?Show your work.

b. What per unit selling prices did Quick Sign set for each of the products? Show your work.

c.Assume that Quick Sign decides to allocate overhead using direct materials costs as the cost driver.What are the per unit allocations of overhead for each product?Show your work.

d.What per unit selling prices would Quick Sign set for each of the products based on the revised per unit cost allocations from Part c? Show your work.