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thank you for the help! 5. B Estimated of Driver Calculated Total Allocated costs units Driver Activity Rate Design 14% $16,601 22 # of Jobs

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5. B Estimated of Driver Calculated Total Allocated costs units Driver Activity Rate Design 14% $16,601 22 # of Jobs $754.59 Batch setup 10% $11,858 50 # of set ups $237.16 Material 52% $73,520 240 # of materials $306.33 Handling Inspection 5% $5,929 1,200 # of units $4.94 General Factory 9% $10,672 14,000 machine hours $0.76 Total Budgeted OH 100% $118,580 Start here with 4a amount c) During May, the company tracked the necessary drivers for each cost pool. These driver units are listed in the table below. Multiply these units by the appropriate "activity rate" from the table above in 5b. Add the total together. This represents applied overhead for Lock-Tite had used ABC costing. Round to the nearest whole dollar. Actual Driver units Driver Applied Factory Overhead Design 30 # of Jobs Batch setup 70 # of set ups Material Handling 330 # of materials Inspection 1,600 # of units General Factory 13,800 machine hours Total Applied Overhead d) Using ABC, would overhead be over- or under-applied? By how much? c) Overhead is becoming a bigger and bigger cost component of Lock-Tite's products. The vice president has indicated the company has had a difficult time applying overhead because of the complexity of their products. Products tend to have a higher number of components that require more costly material handling and designing. Which method do you think would be best for Lock-Tite to use to apply overhead? Traditional plant-wide overhead rate using direct labor dollars, hours, machine hours, or ABC method? Support your answer by incorporating observations from the calculations in 5) and 6). Answer with complete sentences using between 30 and 50 words

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