SHOW THE CALCULATIONS PLEASE!

Answer the next three questions using the following information: Concord company is considering the adoption of an activity-based costing (ABC) system because the managers suspect that their traditional costing system distorts the product costs. This company produces and sells two products Model S and Model D. Their traditional costing system uses direct labor hours (DLHS) as the allocation base for manufacturing overhead (MOH) cost. The production managers decided that major activities are Machining, Machine setups, Product design, and Order size and determined the costs for each activity. They also identified how many machine hours (MHs), setups, product design, and DLHs each product requires. Additional information follows: Price Costs: Direct Materials (DM) Direct labor (DL) Units produced Model S $120 per unit $32 per unit $23 per unit 200,000 units Model D $140 per unit $36 per unit $30 per unit 100,000 units 100,000 MHS 100 setups 75,000 MHs 300 setups 1 100,000 DLHS 1 200,000 DLHS Activities (Activity measure): Machining (MHS) Machine setups (Number of setups) Product design (Number of products) Order size (DLHS) Manufacturing Overhead Costs Machining $700,000 Machine setups $800,000 Product design $240,000 Order size $720,000 Total Cost $2,460,000 18 What is the manufacturing overhead rate under the traditional costing system? A. $ 12.30 per direct labor hour B. $ 14.06 per machine hour C. 8.20 per direct labor hour D. $ 24.60 per direct labor hour E. None of the above $ 19 How much of the total overhead costs will be allocated to Model D under ABC? A. $ 1,230,000 B. S 1,260,000 C. S 1,200,000 D S 820,000 E. None of the above 20 Which of the following statements is truc? A. The traditional costing system overcosts Model S by $2.20. B. The traditional costing system undercosts Model S by $6.00. C. The traditional costing system overcosts Model D by $4.40. D. The traditional costing system undercosts Model D by $12.60. E. Both systems come up with the same cost for both products