Tamarindo Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A's production is much more labor- intensive than Model B's. Model B is also the more popular of the two speakers. The following data have been gathered for the two products: Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Overhead Costs Setup costs Inspection costs Machining Maintenance Total Product Data Model A Model B 30,000 $200,000 140,000 300,000 $2,000,000 300,000 20,000 200,000 40 60 800 10,000 1,200 90,000 $ 360,000 280,000 320,000 360,000 $1,320,000 Required 1. Compute the overhead cost per unit for each product using a plantwide rate based on direct labor hours. 2. Compute the overhead cost per unit for each product using activity-based costing. 3. Suppose that Tamarindo decides to use departmental overhead rates. There are two departments: Department 1 (machine intensive) with a rate of $4.66 per machine hour, and Department 2 (labor intensive) with a rate of $1.20 per direct labor hour. The consumption of these two drivers is given below: Model A Model B Department 1 10,000 170,000 Department 2 130,000 270,000 Compute the overhead cost per unit for each product using departmental rates. 4. Using the activity-based product costs as the standard, comment on the ability of departmental rates to improve the accuracy of product costing. (Did the departmental rates do better than the plantwide rate?)