Required:

Using direct labor$-$hours as the base for assigning manufacturing overhead cost to products, do the following:

Determine the predetermined overhead rate that will be used during the year.

Determine the unit product cost of one pound of the Mona Loa coffee and one pound of the Malaysian coffee.

Using activity$-$based costing as the basis for assigning manufacturing overhead cost to products, do the following:

Determine the total amount of manufacturing overhead cost assigned to the Mona Loa coffee and to the Malaysian coffee for the year.

Using the data developed in part $(2$a$)$ above, compute the amount of manufacturing overhead cost per pound of the Mona Loa coffee and the Malaysian coffee.

Determine the unit product cost of one pound of the Mona Loa coffee and one pound of the Malaysian coffee.