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Cary Company manufactures two models of industrial components$$a Standard model and an Advanced Model. It has provided the following information with respect to these two products:

Standard Advanced

Number of units produced and sold $20,00010,000$

Selling price per unit $ $150$ $ $200$

Direct materials per unit $ $40$ $ $60$

Direct labor cost per unit $ $30$ $ $30$

Direct labor$-$hours per unit $1\mathrm{.}501\mathrm{.}50$

The company considers all of its manufacturing overhead costs $($$$1,346,250)$ to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor$-$hours.

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Required:

$1.$ Go to the tab titled $$Plantwide Approach:$$

a$.$ Create a formula that calculates the direct labor$-$hours in the denominator of the plantwide overhead rate $($cell F$3).$ Also, create a formula that calculates the plantwide overhead rate $($cell F$4).$ What formulas correctly calculate these two amounts?

b$.$ What is the plantwide overhead rate?

c$.$ Create the appropriate formulas $($within cells B$11$ through D$17)$ to compute the gross margins for the Standard and Advanced models as well as the company as a whole. What formulas correctly calculate the direct materials, direct labor, and manufacturing overhead for the Standard model?

d$.$ What are the gross margins for the Standard model $($cell B$17)$ and the Advanced model $($cell C$17)?$

e$.$ Using Charts, create a pie chart that shows the percent of total manufacturing overhead cost allocated to each product using the plantwide approach. $($Your instructor may require you to upload this file in Part $6).$

f$.$ What percent of the total manufacturing overhead cost is allocated to the Standard model using the plantwide approach? The Advanced model?

Cary$$s production manager has suggested replacing the company$$s current cost system with an activity$-$based costing system that assigns all of the company$$s manufacturing overhead costs to four activity cost pools as follows $($the company does not have any organization$-$sustaining costs or unused capacity costs$)$:

Activity Measure Activity Measure Manufacturing Overhead

Assemble and pack Direct labor hours $ $292,500$

Machining Machine$-$hours $440,000$

Order processing Number of customer orders $256,250$

Setups Setup hours $357,500$

$ $1,346,250$

The production manager also provided the following additional information with respect to the company$$s two products:

Standard Advanced

Machine$-$hours per unit $1\mathrm{.}02\mathrm{.}0$

Average customer order size $($in units$)40050$

Number of setups per customer order $11$

Number of setup hours per setup $13$