Wellington Chocolate Company uses activity$-$based costing $($ABC$).$ The controller identified two activities and their budgeted costs:

Setting up equipment $$630,000$

Other overheard $$5,376,000$

Setting up equipment is based on setup hours, and other overhead is based on oven hours.

Wellington produces two products, Fudge and Cookies. Information on each product is as follows:

Fudge Cookies

Units produced $8,000445,000$

Setup hours $12,0003,000$

Oven hours $4,20029,400$

Required:

Round your answers to the nearest whole dollar, unless otherwise directed.

$1.$ Calculate the activity rate for $($a$)$ setting up equipment and $($b$)$ other overhead.

a$.$ Setting up equipment $fill in the blank $1$

$42$

per setup hour

b$.$ Other overhead $fill in the blank $2$

$160$

per oven hour

$2.$ How much total overhead is assigned to Fudge using ABC?

$fill in the blank $3$

$1,176,000$

$3.$ What is the unit overhead assigned to Fudge using ABC? Round to the nearest cent.

$fill in the blank $4$

$147$

per unit

$4.$ Now, ignoring the ABC results, calculate the plantwide overhead rate, based on oven hours. Round to the nearest cent.

$fill in the blank $5$

per oven hour

$5.$ How much total overhead is assigned to Fudge using the plantwide overhead rate?

$fill in the blank $6$

$6$a$.$ The difference in the total overhead assigned to Fudge is different under the ABC system and non$$ABC system because

different treatment of setup costs.

$.$

$6$b$.$ What is the difference in total overhead assigned to fudge under the two methods?

$fill in the blank $8$