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ABC Manufacturing, Inc. produces three gadgets (Ace, Best, and Champ) in two departments, Machining and...

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ABC Manufacturing, Inc. produces three gadgets (Ace, Best, and Champ) in two departments, Machining and Assembly. Each product requires one hour of direct labor for completion. The following table provides production and cost data for the year. Ace Best Champ Total Number of units 25,000 15,000 5,000 45,000 Machine hours 2,500 1,500 2,000 6,000 Direct materials $1,000,000 $450,000 $275,000 $1,725,000 Direct labor $375,000 $225,000 $75,000 $675,000 Overhead Macining $900,000 Assembly $450,000 Total overhead $1,350,000 Total costs $3,750,000 Required: Use the plantwide allocation method to determine the unit cost for each product. POHR RATE DM DL MOH Total Cost per unit Machine Hours Required: Use the department allocation method to determine the unit cost for each product. Direct materials Direct labor Applied overhead Applied Overhead: Machining per machine hour Assembly of direct labor cost DL DM MOH Unit cost

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