5 Problem 4-12 Contrasting ABC and Conventional Product Cost [LO4-2, LO4-3, LO4-4] 2 points Precision Manufacturing Inc. (PMI) makes two types of industrial component partsthe EX300 and the TX500. It annually produces 66,000 units of EX300 and 13,100 units of TX500. The company's 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 company's two product lines is shown below: eBook Direct materials Direct labor EX300 $372,325 $126,000 TX500 $168,550 $ 45,500 Total $540,875 $171,500 Print References References 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 (and Activity Measure) Machining machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost Manufacturing Overhead $201,875 213,900 141,600 77,175 $634,550 EX300 96,000 105 1 $126,000 TX500 65,500 360 1 $45,500 Total 161,500 465 2 $171,500 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. O Activity Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost Manufacturing Overhead $201,875 213,900 141,600 77,175 $634,550 EX300 96,000 105 1 $126,000 TX500 65,500 360 1 $45,500 Total 161,500 465 2 $171,500 2 points eBook Print References Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the plantwide overhead rate that would be used in the company's conventional cost system. (Round your answer to 2 decimal places.) Predetermined overhead rate per DL$ UT Activity Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost Manufacturing Overhead $ 201,875 213,900 141,600 77,175 $634,550 EX300 96,000 105 1 $126,000 TX500 65,500 360 1 $45,500 Total 161,500 465 2 $171,500 2 points eBook Print References Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Reg 2B Using the plantwide rate, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.) EX300 TX500 Unit product cost 1 2 5 Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost 141,600 77,175 $634,550 $126,000 $45,500 $171,500 2 points Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. eBook Print References Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2A Reg 2B Compute the activity rate for each activity cost pool. (Round your Machining and General factory activity rates to 2 decimal places.) Activity Rate per MHR Activity Cost Pools Machining Setups Product-level General factory per setup hr. per product per DLS 5 Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost 141,600 77,175 $634,550 $126,000 $45,500 2 $171,500 2 points Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. eBook Print References Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2A Reg 2B Using the activity rates, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.) EX300 TX500 Unit product cost