1A. Predetermine overhead rate _______ per dlh
1B. Unit Product Cost: Deluxe ______ & Regular ________
2A. 
3A.
3B.
iegel Company manufactures a product that is available in both a deluxe model and a regular model. The company has manufactured ne regular model for years. The deluxe model was introduced several years ago to tap a new segment of the market. Since troduction of the deluxe model, the company's profits have steadily declined and management has become increasingly concerned bout the accuracy of its costing system. Sales of the deluxe model have been increasing rapidly. Manufacturing overhead is assigned to products on the basis of direct labor-hours. For the current year, the company has estimated nat it will incur $6,161,250 in manufacturing overhead cost and produce 13,000 units of the deluxe model and 111,000 units of the egular model. The deluxe model requires 1.0 hours of direct labor time per unit, and the regular model requires 0.5 hour. Material and abor costs per unit are as follows: lequired: a. Using direct labor-hours as the base for assigning manufacturing overhead cost to products, compute the predetermined verhead rate. -b. Using the predetermined overhead rate computed in 1 -a above and other data from the problem, determine the unit product cost f each model. Management is considering using activity-based absorption costing to apply manufacturing overhead cost to products. The activityased system would have the following four activity cost pools: etermine the predetermined overhead rate for each of the four activity cost pools. Using the predetermined overhead rates you computed in part (2), do the following: . Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based absorption osting system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each 1odel. Compute the unit product cost of each model (including direct materials, direct labor, and manufacturing overhead). \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Activity Cost Pool } & \multicolumn{2}{c|}{ Predetermined Overhead Rate } \\ \hline Purchasing & & per purchase order \\ \hline Processing & & per MH \\ \hline Scrap or rework & & per order \\ \hline Shipping & & per shipment \\ \hline \end{tabular} Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based absorption costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each model. (Round your intermediate calculations and "Overhead cost per unit" answers to 2 decimal places.) Compute the unit product cost of each model (including direct materials, direct labor, and manufacturing overhead). (Round your intermediate calculations and final answers to 2 decimal places.)
