1. Seco, Inc., produces two types of clothes dryers: deluxe and regular. Seco uses a plantwide rate based on direct labor hours to assign its overhead costs. The company has the following estimated and actual data for the coming year:

   Estimated overhead	$1,666,000
   Expected activity	49,000
   Actual activity (direct labor hours):
   Deluxe dryer	10,000
   Regular dryer	39,000
   Units produced:
   Deluxe dryer	20,000
   Regular dryer	195,000

   Required:

   1. Calculate the predetermined plantwide overhead rate, using direct labor hours. $ per hour

   Calculate the applied overhead for each product, using direct labor hours.

   	Applied overhead
   Deluxe	$
   Regular	$

   2. Calculate the overhead cost per unit for each product. If required, round your answers to the nearest cent.

   	Overhead Cost
   Deluxe	$ per unit
   Regular	$ per unit

   3. What if the deluxe product used 20,000 hours (to produce 20,000 units) instead of 10,000 hours (total expected hours remain the same)? Calculate the effect on the profitability of this product line if all 20,000 units are sold.

   Profits would by $