The lead accountant has compiled the following data in preparation for allocating overhead to three cost drivers. Overhead Costs Utilities $110,000 Utilities (phone, electric, water, gas, etc.) Admin/MGMT $1,020,000 CEO, VPs, Supervisors, Secretary staff costs Factory Costs $1,870,000 Building lease & equipment $3,000,000 (10) A. Allocate the $3,000,000 of monthly overhead costs to the following three cost drivers: 1) Units Produced 2) Direct Labor Hours 3) Raw Material Costs to determine the final product cost per unit (which includes Direct Labor, Raw Materials, and Overhead) Labor Hrs Per Widget Std Labor Rate ($/br): $30.00 + Widget-1 Widget-2 Widget-3 Direct Labor Cost per Widget $120.00 $240.00 $480.00 0 Drivers Units Produced in Factory (all inclusive) 45,000 Widget-1 Widget-2 Widget-3 25,000 15,000 5,000 units per month units per month units per month 300,000 Widget-1 Widget-2 Widget-3 100,000 120,000 80,000 hours per month hours per month hours per month Raw Material Costs $25.00 per unit of Widget-1 $50.00 per unit of Widget-2 $200.00 per unit of Widget-3 (5) B. Which of the three methods causes the Final Product Cost of Widget-3 to exceed $900? In 30 words or less, why did this occur? (5) C. If the current sales price of Widget-3 is only $1,000, as the lead accountant, name at least TWO strategies you should consider to make Widget-3 a more viable product to sell/produce? Increasing the sales price is not an option due to prevailing market competition