Using direct labor-hours as the manufacturing overhead cost allocation base, do the following:a. Determine the plantwide predetermined overhead rate that will be used during the year. b. Determine the unit product cost of one pound of Kenya Dark coffee and one pound of Viet Select coffee. 2. Using the activity-based absorption costing approach, do the following:a. Determine the total amount of manufacturing overhead cost assigned to Kenya Dark coffee and to Viet Select coffee for the year. b. Using the data developed in (2a) above, compute the amount of manufacturing overhead cost per pound of Kenya Dark coffee and Viet Select coffee. c. Determine the unit product cost of one pound of Kenya Dark coffee and one pound of Viet Select coffee. 3. Write a briefmemo to the president of NCI that explains what you found in steps 1 and 2 and that discusses the implications of using direct labor-hours as the only manufacturing overhead cost allocation base.
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