Shady Fabrication Group $($SFG$)$ manufactures components for manufacturing equipment at several facilities. The company produces

two, related, parts at its Park River Plant, the models SF$-08$ and SF$-48.$ The differences in the models are the quality of the materials

and the precision to which they are produced. The SF$-48$ model is used in applications where the precision is critical and thus requires

greater oversight in the production process.

Although sales remain reasonably strong, managers at SFG have noticed that the company is meeting more resistance to the pricing

for SF$-08,$ although there seems to be little need for negotiation on the price of the SF$-48$ model. As a result, the marketing manager

at SFG has asked the financial staff to review the costs of the two products to understand better what might be happening in the

market.

Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month manufacturing

overhead was $$189,000.$ During that time, the company produced $8,400$ units of Model SF$-08$ and $2,100$ units of Model SF$-48.$ The

direct costs of production were as follows:

Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last month were as

follows:

Required:

a$.$ How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total

cost per unit produced for each product?

b$.$ How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost

per unit produced for each product?