Thompson Company manufactures a variety of high- and low-volume products, including product 456, in its Westchester Plant.
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(1) If the Westchester Plant accumulates all overhead in a single cost pool and allocates it on the basis of machine hours, how much overhead cost will be allocated to a unit of Product 456?
(2) If the Westchester Plant uses ABC with setups as the driver for all batch-level overhead, design hours as the driver for all product-level overhead, and machine hours as the driver for all unit- and plant-level overhead, how much overhead cost will be allocated to a unit of Product 456?
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