NOTE: For question 2's fill in the blank the options are: Cell structure / Departmental Structure / Cannot answer due to insufficient information

Bunker Company produces two types of glucose monitors (basic and advanced). Both pass through two producing departments: Fabrication and Assembly. sampling procedure is used). Budgeted data for the three departments are as follows: In the Fabrication Department, the basic model requires 1.6 hour(s) of direct labor and the advanced model requires 3.2 hour(s). In the Assembly Department, the basic model requires 1.8 hour(s) of direct labor and the advanced model requires 3.45 hours. There are 7,500 basic units produced and 4,000 advanced units. Immediately after preparing the budgeted data, a consultant suggests that two manufacturing cells be created: one for the manufacture the basic and the other for the manufacture of the advanced model. Raw materials would be delivered to each cell, and goods would be shipped immediately to customers upon completion. Workers within each cell would also be trained to perform monitor testing. The total direct overhead costs estimated for cell would be $38,000 for the basic cell and $120,000 for the advanced cell. Required: 1. Allocate the inspection costs to each department. Compute the overhead cost per unit for each monitor. Overhead rates use direct labor hours. Round your intermediate calculations and final answers to the nearest cent. 2. Compute the overhead cost per unit if manufacturing cells are created. If required, round your intermediate calculations and final answers to the nearest cent. Which unit overhead cost do you think is more accurate-the one computed with a departmental structure, or the one computed using a cell structure