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Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit product costs are computed on a quarterly basis by dividing each quarters manufacturing costs (materials, labour, and overhead) by the quarters production in units. The companys estimated costs, by quarter, for the coming year are given below:

	Quarter
	First	Second	Third	Fourth
Direct materials	$	183,600		$	91,800		$	45,900		$	137,700
Direct labour		91,800			45,900			22,950			68,850
Manufacturing overhead		137,700			107,100			91,800			122,400
Total manufacturing costs	$	413,100		$	244,800		$	160,650		$	328,950
Number of units to be produced		102,000			51,000			25,500			76,500
Estimated unit product cost	$	4.05		$	4.80		$	6.30		$	4.30

Management finds the variation in unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead, since it is the largest element of cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. After some analysis, you have determined that the companys overhead costs are mostly fixed and therefore show little sensitivity to changes in the level of production.

Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit product costs are computed on a quarterly basis by dividing each quarter's manufacturing costs (materials, labour, and overhead) by the quarter's production in units. The company's estimated costs, by quarter, for the coming year are given below: Quarter Direct materials Direct labour First $183,600 91,800 Manufacturing overhead 137,700 Total manufacturing costs $413,100 Number of units to be produced Estimated unit product cost $ 102,000 4.05 Second $ 91,800 45,900 107,10 0 244,80 $ 0 51,000 $ 4.80 Third $ 45,900 22,950 Fourth $137,700 68,850 91,800 122,400 $160,650 $328,950 $ 25,500 6.30 $ 76,500 4.30 Management finds the variation in unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead, since it is the largest element of cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. After some analysis, you have determined that the company's overhead costs are mostly fixed and therefore show little sensitivity to changes in the level of production. Required: What is the predetermined overhead rate-unit of product? Predetermined overhead rate-basis on direct labour? Estimated unit product cost EACH quarter