G. Assume that instead of the Expected Overhead Costs originally noted, Overhead Costs are allocated to units based on two different labor-based activity bases: Welding and Fabrication. Overhead costs applied via welding are allocated to all units based on total per hour labor costs, while those of fabrication are allocated to all units based on the number of units assembled for the day. Estimate the total overhead costs for each product again when applying overheads costs using the following allocation methods.
H. Based on your answers to Part G, which product has the largest change in total overhead costs (positive or negative)? What contributes most to the change?
I. Based on your answers to Part G above, Estimate the per unit costs for each product again when applying the new overheads costs. (Note: Assume the same production units, Direct Material Costs, and Direct Labor Costs from Parts A â F; Only Overhead Costs change as part of Part G.)
J. Based on your answers to Part G and Part H, which product has the largest change in per unit price (positive or negative)? What contributes most to the change?