Simplifying the ABC System: DBC Electan Company produces two types of printers. The company uses ABC, and all activity drivers are duration drivers. Electan Company is considering using DBC and has gathered the following data to help with its decision. A. Activities with duration drivers: Activities Products Changeover Assembly Testing Rework Total Hours Printer A 1,000 12,000 8,000 8,000 25,000 Printer B 4,000 8,000 12,000 12,000 25,000 Total hours 5,000 20,000 20,000 20,000 50,000 B. Activities with consumption ratios and costs: Activities Cost Rework Assignment Products Changeover Assembly Testing Printer A 0.20 0.60 0.40 0.80 $155,000 Printer B 0.80 0.40 0.60 0.20 $155,000 Activity costs $75,000 $120,000 $60,000 $55,000 $310,000 C. Products with cycle time and practical capacity: Practical Products Cycle Time Capacity Printer A 2.5 hours 10,000 units Printer B 1.25 hours 20,000 units Required: 1. Calculate the total time for all primary activities. hours 2. Calculate the overhead rate that DBC uses to assign costs. per labor hour 3. Use the overhead rate calculated in Requirement 2 to calculate the overhead cost per unit for each product Printer A Printer B Calculate the total overhead assigned to each product. Printer A Printer B 4. What if the units actually produced were 10,000 for Printer A and 18,000 for Printer B. Using DBC, calculate the cost of unused capacity