Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs:


Setting up equipment $572,000

Other overheard $2,464,000


Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows:


Fudge Cookies

Units produced 8,000 445,000

Setup hours 8,800 2,200

Oven hours 2,200 15,400


Required:

a. Calculate the activity rate for (a) setting up equipment and (b) other overhead.

b. How much total overhead is assigned to Fudge using ABC?

c. What is the unit overhead assigned to Fudge using ABC?

d. How much total overhead is assigned to Fudge using the plantwide overhead rate?