$4-3.$ Using multiple cost pools to allocate costs. Pace Industries manufactures two types of sports equipment: footballs and

baseballs. Pace's production facility is organized into two departments, one for each product line. Each department

occupies a separate space within Pace's manufacturing plant and the machinery and equipment costs vary by department.

The production of footballs is more labor intensive, whereas the production of baseballs is more machine intensive.

Nevertheless, for simplicity, Pace applies all its manufacturing overhead based on direct labor hours $($DLH$).$ Here are data

regarding Pace's overhead cost pools for the current year:

$[$a$]$ Depreciation on building, property tax, insurance, plant manager's salary, and shared support services $($HR$,$ IT$,$

quality control, security, etc.$)$ that are related to manufacturing. These overhead costs are allocated to production

department$$based on square footage.

$[$b$]$ Each department occupies a separate and distinct space within Pace's manufacturing plant and the machinery and

equipment costs vary significantly by department.

a$.$ If Pace applies overhead using a single plantwide rate rather than departmental rates, which product line is over$-$costed

and which product line is under$-$costed$?$

b$.$ Assume that Pace's per$-$unit production costs for footballs are direct materials of $$35$ and direct labor of

direct labor hours$).$ What is the per$-$unit manufacturing cost for one football if Pace uses a plantwide overhead rate?

Departmental overhead rates? Which rate provides a more accurate measure of the consumption of overhead resources?

c$.$ Assume Pace sells footballs for $$150$ per unit. How much higher or lower is Pace's gross margin percentage if it uses a

plantwide overhead rate rather than departmental overhead rates? For a managerial accounting class