Aksign overhead wsin P543B (101.2.3) VidPlayers Ine. manufiactures two types of DVD players: a deluxe model and a superior model raditional costing and The deluxe model is a multi-format progressive-scan DVD player with networking capability, Dolby digital, and DTS ABC: calculate unit decoder. The superior model's primary feature is progressive-scan. Annual production is 20,000 units for the deluxe and costs; classify activities 50,000 units for the standard as value-added or non Both products require two hours of direct labour for completion. Therefore, total annual direct labour hours are 140,000 or 2 hrs. x (20,000+ 50,000). Estimated annual manufacturing overhead is $980,000. Thus, the predetermined overhead rate is $7 or ($980,000+140,000) per direct labour hour. The direct materials cost per unit is $11 for the deluxe model and $42 for the superior model. The direct labour cost is $18 per unit for both the deluxe and the superior models. The company's managers identified six activity cost pools and related cost drivers, and estimated overhead by cost pool as follows