Using ABC to apply MOH Sharjah has become concerned about increasing competition in the market for its Standard product line. To retain its current customers, it may have to lower its price to a level that appears to be below cost. Demand for its Unique product line is very strong and SU is thinking about expanding its production capacity in that area. Late last year Sharjah decided to investigate the benefits of implementing ABC. The company identified four significant activities related to manufacturing overhead cost. The activities, their related cost drivers (allocation bases), and the cost traced to each activity are listed below. Sharjah collected data for the month of January for each product and their respective levels of activity. Using the rates calculated above, compute the total overhead cost allocated to aach nrodiuct Accounting 202- ABC Shrajah Company makes two products, Standard and Unique. The Standard product line is a high-volume line, and the Unique line is a low-volume, specialized product. In the past, Sharjah Company used machine hours to apply overhead to its products. Late last year, a POR was developed using the following data: Budgeted annual overhead cost:: $2,000,000 Estimated machine hours 20,000 hours The POR would be: Other per unit costs for the two products are: Using a single budgeted MOH rate to apply overhead Compute total product cost and the cost per unit for each product in January using a single rate to allocate manufacturing overhead to the products. Compute total product cost and the cost per unit for each product in January using ABC to allocate manulacturing overhead to the products. ABC Example