b$.$

Using the plantwide allocation method, calculate the predetermined overhead

rate and determine the overhead cost per unit allocated to the desk and table

products.

Using the plantwide allocation method, calculate the product cost per unit for the

desk and table products.

c$.1.$ Using the activity$-$based costing allocation method, calculate the predetermined

overhead rate for each activity. $($Hint: step $1$ through step $3$ in the activity$-$based

costing process have already been done for you; this is step $4.)$

Using the activity$-$based costing allocation method, allocate overhead to each

product. $($Hint: This is step $5$ in the activity$-$based costing process.$)$ Determine the

overhead cost per unit. Round results to the nearest dollar.

What is the product cost per unit for the desk and table products?

d$.$ Calculate the per unit profit for each product using the plantwide approach and the

activity$-$based costing approach. How much did the per unit profit change when

moving from one approach to the other?

e$.$ Refer to the estimated cost driver activity provided. Calculate the percent of each

activity consumed by each product $($for example, the desk product issued $910$ of the

$1,000$ purchase orders issued in total and therefore consumes $91$ percent of this

activity$).$ These percentages represent the amount of overhead costs allocated to

each product using activity$-$based costing. Using the plantwide approach, $60$

percent of all overhead costs are allocated to the desk and $40$ percent to the table.

Compare the activity$-$based costing percentages to the percentage of overhead

allocated to each product using the plantwide approach. Use this information to

explain what caused the shift in overhead costs to the desk product using activity$-$