Two products, Ocho and Gone, in a highly competitive industry Counting system allows them to accurately track direct costs per ont Direct Materials Octo $25.00 Gone $50.00 Direct Labour $35.00 $30.00 The Company has been allocating $200,000 factory overhead based on 10.000 machine hours (which is $20 per machine hour). Octo: $20 x 4,000 machine hours/2,000 units $40 per unit Gone: $20 x 6,000 machine hours/1,000 units $120 per unit The selling price is cost + 50% markup. Octo has a selling price of: ($25 DM+ $35 DL+$40 FOH) x 1.50-$150 Gone has a selling price of:($50 DM+ $30 DL+ $120 FOH) x 1.50-$300 The Company has been selling lots of Octo but having trouble selling Gone. The Company has also been losing money recently. A study of factory activities shows the following information: Factory Activity Overhead Cost Total Activity $ 30,000 Grinding 3,000 Machine Hours $ 14,000 Precisioning 7,000 Machine Hours $ 90,000 Moving Parts 22,500 Moves $ 66,000 Testing 3,000 Units $ 200,000 Further inspection revealed the following activities related to Octo and Gone: Used by Octo Used by Gone Grinding 1,600 5.000 1,400 2.000 Further inspection revealed the following activities related to Octo and Gone: Used by Octo Used by Gone Grinding 1,600 1,400 Precisioning 5,000 2,000 Moving parts 18,000 4,500 Testing 2,000 1,000 D Question 1 1 pts Using activity based costing, show how much overhead (PER UNIT) should be assigned to Gone? $58 $48 $71 $90 $120 D Question 2 1 pts Using activity based costing, show how much overhead (PER UNIT) should be assigned to Octo? $58 $131 $71 $91 $48 D Question 3 What new price should be charged for Gone? $300 $207 $196.50 $138 $131 Question 4 What new price should be charged for Octo? $105 $196.50 $207 $100 $131.50 1 pts 1 pts