Terrific Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Terific does large custom orders. Terrific budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly depariment, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formet in batches of 200 units per batch but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50 units per batch. B (Click the icon to view budgeted information.) Read the requirements. ===> Basic Deluxe Total Direct materials Forming $ 45200 $ 23900 $ 69,100 Assembly __ 5200 2000 7.200 Total direct materials 50,400 25,900 76,300 Direct manufacturing labor Forming 32,600 14,800 47,400 Assembly 15,700 21,300 37.000 Total direct manufacturing labor 48,300 36,100 84.400 $ 98,700 $ 62,000 160,700 Total direct costs Next, calculate the budgeted overhead rate for total overhead allocated based on total direct costs. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent, $X.XX. Abbreviations used: DC = Direct cost, DL = Direct labor, $ = dollar.) Total overhead costs + Total direct costs = Budgeted overhead rate $ 32,140 + 160,700 $ 020 perDC$S Finally, calculate unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, SX.XX.) Basic Deluxe Total Total direct costs \\ Allecated overhead _ ' Total costs Unit cost 1 - X Data table The controller has asked you to compare plantwide, department, and activity-based cost allocation. Terrific Budgeted Information for the Year Ended November 30, 2020 Forming Department Basic Deluxe Total Direct materials $ 45200 23,900 69,100 Direct manufacturing labor 32,600 14,800 47,400 Overhead costs: Set up 7,110 Overhead costs: General overhead 21,330 Assembly Department Basic Deluxe Total Direct materials s 5,200 $ 2,000 $ 7,200 Direct manufacturing labor 15,700 21,300 37,000 Overhead costs: General overhead 3,700 Requirements 3 . Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) . Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. Calculate the budgeted unit cost of basic and deluxe trophies if Terrific allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. . Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why? Terrific Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Terrific does large custom orders. Terrific budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 units per batch but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50 units per batch. E (Click the icon to view budgeted information.) Read the requirements. RSDEITIVEY Total direct manufacturing labor 48,300 36,100 84,400 Total direct costs $ J8H0Y $ 82000 $ 16000 Next, calculate the budgeted overhead rate for total overhead allocated based on total direct costs. First select the formula, then enter the applicable amounts and calculate the rate. (Round your answer to the nearest cent, $X.XX. Abbreviations used: DC = Direct cost, DL = Direct labor, $ = dollar.) Total overhead costs + Total direct costs = Budgeted overhead rate $ 32,140 + 160,700 = $ 020 per DC $ Finally, calculate unit cost for the basic and deluxe trophies. (Round your final answer to the nearest cent, $X.XX.) Basic Deluxe Total Total direct costs $ 98,700 $ 62,000 $ 160,700 Allocated overhead 19'740' 12'400' 32,140 Total costs $ 118,440" $ 74,400 192,840 ~ ~ Unit cost $ 11.84 $ 14.88 Requirement 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. Start by calculating the budgeted overhead rate for the forming and assembly departments based on direct manufacturing labor costs. First select the formula, then enter the applicable amounts and calculate the rates. (Round the budgeted overhead rates to the nearest cent, $X.XX.) Budgeted overhead rate Forming + = Assembly + = Requirement 2 Forming Assembly Forming Assembly Direct Manufacturing Labor Cost 32,600.00 15,700.00 Direct Manufacturing Labor Cost 14,800.00 21,300.00 Basic / Total Direct Manufacturing Labor Cost / 47,400.00 / 37,000.00 Deluxe / Total Direct Manufacturing Labor Cost / 47,400.00 / 37,000.00 Basic [p1[1){) Budgeted overhead rate 0.89 0.42 Basic Deluxe Budgeted overhead rate 0.89 0.31 0.42 0.58