Please help me with these question. If it's possible, please write it as detail as you can, because this my first time to learn about it.

Thanks a lot!!

PROBLEM 8-24 (Appendix 88) Activity-Based Costing as an Alernative to Traditonal Product Costing [LOT] Rehm Company manufactures a product that is available in both a deluxe model and a regular model. The company has manufactured the regular model for years. The deluxe model was introdaced several years ago to tap a new segment of the market. Since introduction of the deluxe model, the company's profits have steadily declined, and management has become increasingly concerned about the accuracy of its costing system. Sales of the deluxe model have been increasing rapidly. Manufacturing overbead is assigned to products on the basis of direct labor-hours. For the current year, the company has estimated that it will ineur $6,000,000 in manufacturing overhead cost and produce 15,000 units of the deluxe model and 120,000 units of the regular model. The deluxe model requires 1.6 hours of direct labor time per unit, and the regular model requires 0.8 hours. Material and labor costs per unit are as follows: Fequired: 1. Using direct labor-bours as the base for assigning manufacturing overhead cost to products, compute the peedetermined overbead rate. Using this rate and other data from the problem, determine the wnit product cost of each model. 2. Manageanent is considering using activity-based costing to apply manufacturing overhead costs to products for external financial reports. The activity-based costing system would have the folfowing four activity cost pools: Using Exhibit 8-6 as a guide, compuic the peedetermined overhead rates (i.e., activity rates) for each of the four activity cost pools. 3. Using the predetermined overhead rates computed in part (2) above, do the followiag: a. Compuite the total amoent of manufacturing overhead cost that would be applied to each model using the activity.based costieg system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit for each model. b. Compute the unit prodact cost of each model (materials, labor, and manufacturing overhead). 4. From the data you have developed in (1) through (3) above, identify factors that may accouat for the company's declining profits