Smokey and the Bandit produces outdoor activity clothing. Theproduct line consists of pants, jackets, tops, and accessories.Data has been collected related to direct materials and directlabor for the four product lines. Smokey and the Bandit has alsocollected information on four possible costdrivers (units, batches, machine hours, labor hours). All thisinformation is listed below. Construct a spreadsheet that willallocate overhead for each of these alternative drivers and willcalculate the total per unit cost for each product line.Use the VLOOKUP function when constructing thespreadsheet so that you can determine the effect of different costdrivers on the overhead allocated and the resulting cost perunit.   

Product Line	Units		Average Sales Price per unit	Total Material Cost	Total Labor Cost
Pants		4,600	$73	$234,600	$20,115
Jackets		2,500	$98	$145,000	$25,200
Tops		9,800	$36	$156,800	$32,970
Accessories		18,500	$12	$ 37,000	$15,210

Product Line	Batches			Machine Hours		Labor Hours
Pants			42		1,640	1,341
Jackets			26		1,730	1,400
Tops			78		2,600	2,198
Accessories			95		2,250	845

Total overhead cost to be allocated: $321,560

After constructing your spreadsheet answer the followingquestions?

1. What is the total cost per unit of each product line whenmachine hours are used as the cost driver for overheadallocation?
2. How much overhead is allocated to Jackets when direct laborhours are used as the cost driver for overhead allocation?
3. What is the total cost of Tops when direct labor hours are usedas the cost driver for overhead allocation?
4. What is the total cost per unit of Accessories when the numberof batches is used as the cost driver for overhead allocation?
5. What is the allocation rate when units are used as the costdriver?
6. If you are the manager of the Jackets product line which costdriver would you prefer? Why?
7. Currently the OH cost are being allocated based on DL hours. Ifthe company decides to use units as the cost driver how would youreact if you are the Accessories product line manager?