L 19 Gregory Enterprises produces two-wheel rim models: standard and deluxe. The budgeted data for 2021 are as follows:StandardDeluxeUnits ProducedDirect labor hours (DHLs)Direct costs per unitThe company has identified three cost pools to allocate overhead costs. The following estimates are provided for 2021:Cost poolOverhead CostsCost DriverActivity LevelActivity LevelDeluxe200,000160,000250,000Supervision560,0002Standard600,000800,00035,00080,000$320,000Supervision hoursMachine operation$120,000Machine-hoursFacility rent$200,000Square feet of areaUsing the ABC method, what is the unit cost of the standard wheel rim: $4.Assume a simple costing system using direct labor hours as the only overhead cost driver, what is the unit cost of thestandard product?A.$3.85B.S4C.$4.24D.$5.3580,0002.520,000

Two main types of costing methods are being used in business. One is traditional or simple costing…

Gregory Enterprises produces two-wheel rim models: standard and deluxe. The budgeted data for 2021 are as follows: Standard Deluxe Units Produced Direct labor hours (DHLs) Direct costs per unit The company has identified three cost pools to allocate overhead costs. The following estimates are provided for 2021: Cost pool Overhead Costs Cost Driver Activity Level Activity Level Deluxe 200,000 160,000 250,000 560,000 Supervision 2 Standard 600,000 $320,000 Supervision hours Machine operation $120,000 Machine-hours Facility rent $200,000 Square feet of area Using the ABC method, what is the unit cost of the standard wheel rim: $4. Assume a simple costing system using direct labor hours as the only overhead cost driver, what is the unit cost of the standard product? A.$3.85 B.$4 C.S4.24 D.$5.35 800,000 35,000 80,000 80,000 2.5 20,000