Required information Problem 4-17 (Algo) Contrast Activity-Based Costing and Conventional Product Costing [LO4-2, LO4-3, LO4-4] [The following information applies to the questions displayed below.] Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow: Direct Labor- Hours per Unit Model N see XL Model N 500 4.0 1.0 Annual Production 5,000 units 14,000 units Total Direct Labor-Hours 20,000 14,000 34,000 Additional information about the company follows: a. Model N 800 XL requires $80 in direct materials per unit, and Model N 500 requires $40. b. The direct labor wage rate is $19 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 690,000 245,000 2,193,000 $ 3,128,000 Activity Measure Number of setups Machine-hours Direct labor-hours Expected Activity Model N see XL 180 17,500 20,000 Model N 500 280 0 Total 460 14,000 17,500 34,000 Problem 4-17 (Algo) Part 1 Required: 1. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. a. Compute the predetermined overhead rate. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Req 1A Req 1B > Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the unit product cost of each model. (Round your answers to 2 decimal places.) Model N 800 XL Model N 500 < Req 1A Req 1B