6 Shady Fabrication Group (SFG) manufactures components for manufacturing equipment at several facilities. The company producestwo, related, parts at its Park River Plant, the models SF-08 and SF-48. The differences in the models are the quality of the materialsand the precision to which they are produced. The SF-48 model used in applications where the precision is critical and thus requiresgreater oversight in the production process.Although sales remain reasonably strong, managers at SFG have noticed that the company is meeting more resistance to the pricingfor SF-08, although there seems to be little need for negotiation on the price of the SF-48 model. As a result, the marketing managerat SFG has asked the financial staff to review the costs of the two products to understand better what might be happening in themarket.Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month manufacturingoverhead was $181,800. During that time, the company produced 8,080 units of Model SF-08 and 2,020 units of Model SF-48. Thedirect costs of production were as follows:Direct materialsDirect laborCost DriverDirect material costsNumber of production runsNumber of inspectionsTotal overheadSF-08$ 161,600121,200Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last month were asfollows:SF-48$ 90,90080,800Total overheadTotal unit costOverhead Costs$ 50,50054,54076,760$ 181,800SF-08Total$ 252,500202,000SF-48Activity LevelComplete this question by entering your answers in the tabs below.SF-08161,600208< Required ASF-4890,900Required:a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the totalcost per unit produced for each product?b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total costper unit produced for each product?4011Required A Required BHow much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is thetotal cost per unit produced for each product?Note: Round "Total unit cost" to 2 decimal places.Total252,5006019Required B >

SF-08SF-48Overhead CostTotal Activity LevelActvity LevelActivity %Allocated OverheadActvity…

ain reasonably strong, managers at SFG have noticed that the company is meeting there seems to be little need for negotiation on the price of the SF-48 model. As a e financial staff to review the costs of the two products to understand better what head is currently assigned to products based on their direct labor costs. For the mo