Elix Company manufactures two models of ultra-high fidelity speakers-the 200 model and the 99 model. Data regarding the two products follow: Additional information about the company follows: a. Model X200 requires $43 in direct materials per unit, and model X99 requires $33. b. The direct labor workers are paid $30 per hour 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 considening the use of activity-based absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified 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 octivity 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 applied to each model using the activity-based approach b. Compute the unit product cost of each model Assume that the company continues to use direct labor-hours as the allocation base for applying overhead cost to products. Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) Assume that the company continues to use direct labor-hours as the allocation base for applying overhead cost to products. Compute the unit product cost of each model. (Round "Predetermined overhead rate" to nearest dollar amount. Round other intermediate calculations and final answers to 2 decimal places.) Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Compute the activity rate for each activity cost pool. Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Determine the amount of overhead cost that would be applied to each model using the activity-based approach. (Round "Overhead cost per unit" answers to 2 decimal places.) Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Compute the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places.)
