Required:
Using the data from exercise 7, calculate the following:
(1) If the Westchester plant accumulates all overhead in a single cost pool and allocates it on the basis of direct labor hours, how much overhead cost will be allocated to a unit of Product 456?
(2) If the Westchester plant uses ABC with setup hours as the driver for all batch-level overhead, design changes as the driver for all product-level overhead, and direct labor hours as the driver for all unit- and plant-level overhead, how much overhead cost will be allocated to a unit of Product 456?
Exercise 7
Thompson Company manufactures a variety of high- and low-volume products, including product 456, in its Westchester Plant. The following information pertains to the most recent year:

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Total for Products 456 Total for Unit-level overhead Batch-level overhead Product-level overhead Plant-level overhead Total overhead Westchester $ 200,000 300,000 500,000 400,000 1,400,000 Units produced Direct labor hours Machine hours.. 5,000 20,000 10,000 120 100 Setups Setup hours.... Design changes Design hours 4,000