1.Compute the plantwide overhead rate that would be used in the companys conventional cost system. (Round your answer to 2 decimal places.)

1-b.

Using the plantwide rate, compute the unit product cost for each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

2-a.

Compute the activity rate for each activity cost pool. (Round your Machining and General factory activity rates to 2 decimal places.)

2-b.	Using the activity rates, compute the unit product cost for each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Problem 3-12A Contrasting ABC and Conventional Product Costs ILO3-2, LO3-3, LO3-4] Precision Manufacturing Inc. (PMI) makes two types of industrial component parts the EX300 and the TX500. It annually produces 67,000 units of EX300 and 13,200 units of TX500. The companys conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the companys two product lines is shown below: EX300 TX500 Total Direct materials $373,325 $169,550 $542,875 $127,000 46,000 $173,000 Direct labor The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Activity Cost Pool Manufacturing (and Activity Measure) EX300 TX500 Overhead Total 195,600 97,000 Machining (machine-hours) 66,000 163,000 Setups (setup hours) 225,600 110 370 480 Product-level number of products) 156,620 $173,000 General factory (direct labor dollars 79,580 $127,000 46,000 Total manufacturing overhead cost 657,400