18 Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit product costs are computed on a quarterly basis by dividing each quarter's manufacturing costs (materials, labour, and overhead) by the quarter's production in units. The company's estimated costs, by quarter, for the coming year are given below: Quarter First $ 649,600 324,800 Second $324,800 162,400 Third $162,400 81,200 Fourth $ 487,200 243,600 440,800 394,400 371,200 417,600 Direct materials Direct labour Manufacturing overhead Total manufacturing costs Number of units to be produced Estimated unit product $1,415,200 $ 881,600 $614,800 $1,148,400 116,000 58,000 29,000 87,000 $ 12.20 $ 15.20 $ 21.20 $ 13.20 cost Management finds the variation in unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead, since it is the largest element of cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. After some analysis, you have determined that the company's overhead costs are mostly fixed and therefore show little sensitivity to changes in the level of production. Required: 1. Calculate the predetermined overhead rate based on units and direct labour? (Round your "per unit" answer to 2 decimal places.) Required: 1. Calculate the predetermined overhead rate based on units and direct labour? (Round your "per unit" answer to 2 decimal places.) Predetermined overhead rate-unit of product per unit Predetermined overhead rate-basis on direct labour cost % 2. Recompute the company's unit product costs in accordance with your recommendations in (1) above. (Round your answers to 2 decimal places.) Quarter First Second Third Fourth Estimated unit product cost