Req $1A$

Req $1$B

Req $2B$

Using the plantwide rate, compute the unit product cost for each product. $($Round your intermediate calculations and final

answers to $2$ decimal places.$)$ Req $1A$

Compute the activity rate for each activity cost pool. $($Round your Machining and General factory activity rates to $2$ decimal

places.$)$ Using the activity rates, compute the unit product cost for each product. $($Round your intermediate calculations and final

answers to $2$ decimal places.$)$Problem $4-12($Algo$)$ Contrasting ABC and Conventional Product Cost $[$LO$4-2,$ LO$4-3,$ LO$4-4]$

Precision Manufacturing Incorporated $($PMI$)$ makes two types of industrial component parts$-$the EX$300$ and the TX$500.$ It annually

produces $62,000$ units of EX$300$ and $12,700$ units of TX$500.$ The company's conventional cost system allocates manufacturing

overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to

the company's two product lines is shown below:

The company is considering implementing an activity$-$based costing system that distributes all of its manufacturing overhead to four

activities as shown below:

Required:

$1-$a$.$ Compute the plantwide overhead rate that would be used in the company's conventional cost system.

$1-$b$.$ Using the plantwide rate, compute the unit product cost for each product.

$2-$a$.$ Compute the activity rate for each activity cost pool.

$2-$b$.$ Using the activity rates, compute the unit product cost for each product.

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Req $1B$

Compute the plantwide overhead rate that would be used in the company's conventional cost system. $($Round your answer to $2$

decimal places.$)$