Terrific inc. makes two styles of trophios, basic and deluxe, and operates at capacity. Ternfic does largo custom orders. Terrific budgets to produce 10,000 basic trophiles and 5,000 deluxo trophies. Manufacturing takes place in two production departments. Forming and assembly in the forming department, indiroct manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulatod in one generat overhead cost pool. The basio trophies are formed in batches of 200 units per batch but becauso of the mone intricate detail of the deluxe trophies, they are formed in batches of 50 units per batch. III (Click the icon to view budgeted information.) Data table allocation Requirement 1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide ovorhad rato, if total overthead is allocated based on total diroct costs. (Don't forgel to include direct material and direct manufacturing labor cost in your unit cost calculation.) Start by calculating the tolal direct costs for the basic and deluxe trophies depariments. Next, calculate the budgoted overhead rate for lotal overhead allocated based on total direct costs. First select the formula, then enter the applicabie amounts and calculate the rate. (Round your answer to the noarest cont, $. Abbreviations used: DC= Direct cost, DL = Direct labor, $= dollat) Requirements 1. 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.) 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. 3. 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. 4. 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
