Topic 4 Traditional Overhead Costing - practice style exam question Ash & John manufacture tennis racquets. The company offers two types of racquets: Power Pro and Control Plus. The production of each type of racquets requires different resources, however, Ash & John sells all racquets at the same price $180 each. Ash & John has two production departments Frame and String. The racquet frames are made in Department Frame before the workers at Department String string the racquets. The process of frame production is highly automated while the process of stringing requires skilled workers to operate the stringing machines with great care. Ash & John uses a traditional costing system and currently allocates its manufacturing overhead costs to production using a plantwide rate based on machine hours. The company's accountant, Nick, prepared the following estimates for the year 2020. Item Power Pro Control Plus Total Units of production 10,000 8,000 18,000 Direct material costs $ 655,200 S 514,800 $ 1.170,000 Direct manufacturing labour costs $ 155,000 $ 287,800 $ 442,800 Item Frame String Manufacturing overhead costs $ 596,000 S 319,000 S 915,000 Direct Labour Hours Power Pro Control Plus Frame 1,300 1,500 2.800 String 4,000 8,300 12,300 15,100 Machine Hours Power Pro Control Plus Frame 12,000 9,000 21,000 String 4,800 4,200 9,000 30,000 Required: A. Calculate the estimated unit overhead cost of each type of racquets under the company's current costing system. B. Calculate the estimated unit overhead cost of each type of racquets if the company is to allocate the overhead costs in Frame based on machine hours and allocates overhead costs in String based on direct labour hours. C. Compare and discuss your results from A and B