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Elikx Company manufactures two models of ultra-high fidelity spoakers - the 200 model and the 99 modet. Data regarding the two products follow: Additional information

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Elikx Company manufactures two models of ultra-high fidelity spoakers - the 200 model and the 99 modet. Data regarding the two products follow: Additional information about the company follows: a. Model 200 requires $36 in direct materials per unit. and model 99 requires $34. b. The direct labor workers are paid $30 per heur. c. The company has always used direct labor-hours as the allocation base for applying manufacturing overhead cost to products d. Model 200 is more complex to manufacture than model 99 and requires the use of special equipment. e. Because of the special work required in (d) above, the company is considering the ise of activity based absorption costing to apoly manufocturing overhead cost to products. Three activity cost pools have been kfentified as follows: Required: 1. Assume that the company continues to use direct labor-hours as the allocation base for applying overhead cost to products. a. Compute the plantwide predetermined overhead rate. b. Compute the unit product cost of each model. 2. Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost that would be appied to eoch model using the activity based approach. b. Compute the unit product cost of each model

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