2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.) Model A: overhead cost per unit Model B: overhead cost per unit Note: Be sure to complete both tables below. Activity Setups Inspections Driver Production runs Inspection hours Machine hours Maintenance hours Activity Rate per run $ per hour si per hour per hour Machining Maintenance Overhead assignment Model A 348,000 x Model B Setups Inspections Machining Maintenance Total overhead = Units produced Overhead per unit Feedback Check My Work Partially correct 3. Suppose that Ramsey decides to use departmental overhead rates. There are two departments: Department 1: (machine intensive) with a rate of $3 per machine hour and Department 2: (labor intensive) with a rate of s1 per direct labor hour. The consumption of these two drivers is as follows: Department 1 Department 2 Machine Hours Direct Labor Hours Model A 12,000 135,000 Model B 160,000 270,000 Compute the overhead cost per unit for each product by using departmental rates. (Round to two decimal places.) Model A: per unit Model B: per unit Cathy Plantwide versus Departmental Rates, Product-Costing Accuracy: Activity-Based Costing Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A's production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers. The following data has been gathered for the two products: Product Data Model A Model B Units produced per year 10,000 100,000 Prime costs $146,000 $1,460,000 Direct labor hours 139,000 320,000 Machine hours 23,000 202,000 Production runs 50 70 Inspection hours 700 1,100 10,000 90,000 Maintenance hours Overhead costs: Setup costs $348,000 Inspection costs 216,000 Machining 54,000 Maintenance 300,000 Total $918,000 Required