Midterm Exam:Excel problem(35pts) No credit will be given for just answers.Please use basic formulas for full credit. (75 minutes) Funfetti inc has two product lines: frosting and cake.These product lines are customizable. total Manufacturing Overhead $60,000 The company is trying to decide if they should use one MOH rate or ABC. If they use one MOH rate, it would be based on square footage. If they use ABC, the company would have two cost pools. the machine setup pool would be assigned $10,000 andand the inspection cost pool would be assigned $50,000. Additional information about each product line is shown below. Frosting line Cake line sales revenue $240,000 $160,000 Direct materials $100,000 $90,000 Direct labor $72,000 $48,000 units produced 48,000 16,000 Square footage 1,200 800 2,000 Machine setups 150 100 250 Quality control inspection hours 2,000 500 2,500 1.Assume that one MOH rate is used. Frosting MOH: Cake line MOH: A. Total MOH assigned to each product line(6pts)     

B.Calculate all manufacturing costs per unit for Frosting and Cake batter lines. Frosting cost per unit:(2pts)   Cake line per unit:(2pts)   2.Assume ABC is used,Allocate the total OH for each cost pool to each product line. The activity base is machine setups for machine setup cost pool. The activity base is inspection hours for inspection cost pool. A. Frosting MOH:(4pts) Cake line MOH:(4pts) Machine setup cost pool    Inspections cost pool    B.Calculate all manufacturing costs per unit for Frosting and Cake batter lines. Frosting cost per unit(2pts)  Cake line per unit(2pts)  C.Show the profit per line to determine which line is more profitable. Frosting line per unit:(3pts)   Cake batter line per unit(3pts)   3.Explain why ABC might be a better method for this company(at least 2 items) (5pts) Assume other similar companies are selling their frosting line for $6.60 and cake batter line for $13.75... What do you recommend for a new price if the company wants a 50% mark up on the cost.(2pts) .