Using the predetermined overhead rates computed in part $(2)$ above, do the following:

a$.$ Compute the total amount of manufacturing overhead cost that would be applied to each model

using the activity$-$based costing system. After these totals have been computed, determine the

amount of manufacturing overhead cost per unit for each model.

The total amount of manufacturing overhead that will be applied to the Deluxe Model $=$

The total amount of manufacturing overhead that will be applied to the Regular Model $=$

b$.$ Compute the unit product cost of each model $($materials$,$ labor, and manufacturing overhead$).$

The cost per unit of each Deluxe Model $=$

The cost per unit of each Regular Model $=$

From the data you have developed in $(1)$ through $(3)$ above, identify factors that may account for

the company's declining profits.