$1$

$1\mathrm{.}5$

points Additional information about the company follows:

eBook

a$.$ Model $200$ requires $$33$ in direct materials per unit, and model $99$ requires $$33.$

b$.$ The direct labor workers are paid $$30$ per hour.

c$.$ The company has always used direct labor$-$hours as the allocation base for applying manufacturing overhead cost to products.

d$.$ Model X$200$ is more complex to manufacture than model X$99$ and requires special equipment.

e$.$ Because of the special work required in $($d$)$ above, the company is considering an activity$-$based absorption costing system that applies manufacturing overhead cost to products using three activity cost pools:

$\backslash$table$[[$Activity Cost Pool Machine setups,Activity Measure,Estimated Total Cost,Estimated Total Activity$],[$Number of setups,X$200,$X$99,$Total$],[$Special processing,Machine$-$hours,$ $197,100,108,162,270],[$General factory,Direct labor$-$hours,$387,6001,862,000,1,020,0,1,020],[,,$$ $2,446,700,5,100,21,500,26,600]]$

Required:

Assume the company continues applying overhead costs to products using direct labor$-$hours.

a$.$ Compute the plantwide predetermined overhead rate.

b$.$ Compute each model's unit product cost.

Assume the company decides to apply overhead cost to products using activity$-$based absorption costing.

a$.$ Compute the activity rate for each activity cost pool and determine the amount of overhead cost applied to each model.

b$.$ Compute each model's unit product cost.