BERLANDE DELPE 3 - Saved to this PC L e Search Slide Show Review View Help A A A E EIE - A 2-AEEEE \ \000 AZZOG O e Re pe Outline Align Ted Convert to SmartArt Arrange Ouid e n She shape Effects a se Paragraph in connect Suided Example Hefzi Corporation makes two products, Feed 41 and Feed 21. Feed 41 is expected to sell 50,000 units next year and Feed 21 is expected to sell 6,000 units. A unit of either product requires 0.9 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $856,800. Required: 1. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost would be applied to each product? Compute both the overhead cost per unit and the total amount of overhead cost that would be applied to each product. 2. Management is considering an activity-based costing system. It has been suggested that the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products with $428,400 assigned to Product Feed 41 and $428,400 assigned to Product Feed 21. If this suggestion is followed, how much overhead cost per unit would be assigned to each product? 3. Explain the impact on unit product costs of the switch in costing systems. [LO4] predetermined overhead rate based on direct labor-hours. Then we will apply overhead as we would in the traditional direct labor-hour Je will explain the differences