course material

1. Cornerstone Exercise 4.1 (Algorithmic) Applied Overhead and Unit
Overhead Cost: Plantwide RatesSeco, Inc., produces two types of clothes
dryers:…
Cornerstone Exercise 4.1 (Algorithmic)Applied Overhead and Unit Overhead Cost:
Plantwide RatesSeco, Inc., produces two types of clothes dryers: deluxe and regular. Seco
uses a plantwide rate based on direct labor hours to assign its overhead costs. The company
has the following estimated and actual data for the coming year:Estimated
overhead $1,320,000Expected activity 44,000Actual activity (direct labor hours):Deluxe
dryer 9,000 Regular dryer 35,000Units produced:Deluxe dryer 18,000 Regular dryer
175,000Required:1. Calculate the predetermined plantwide overhead rate, using direct
labor hours.$ per hourCalculate the applied overhead for each product, using direct labor
hours. Applied overheadDeluxe$ Regular$2. Calculate the overhead cost per unit for each
product. If required, round your answers to the nearest cent. Overhead CostDeluxe$ per
unitRegular$ per unit3. What if the deluxe product used 18,000 hours (to produce 18,000
units) instead of 9,000 hours (total expected hours remain the same)? Calculate the effect
on the profitability of this product line if all 18,000 units are sold.Profits would – Select your
answer -increasedecreaseItem 6 by $