1. Assume that the company continues to use direct labor hours as the base for applying overhead costs to products.

A) compute the predetermined overhead rate

B) compute the unit product cost of each model

2. assume that the company decides to use activity base costing to assign manufacturing overhead cost to products

A1) compute the activity rate for each activity cost pool

A2) determine the amount of overhead cost that would be assigned to each model using the activity based costume system

B) compute the unit product cost of each model

Puget World, Incorporated, manufactures two models of television sets, the N 8001 model and the N500 model. Data regarding the two products follow: Additional information about the company follows: a. Model N800X. requires $60 in direct materials per unit, and Model N 500 requires $20. b. The direct labor wage rate is $22 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products: d. Model N 800XL 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 manufocturing overhead cost to products. Three activity cost pools have been identified as follows