Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow: Product X200 X99 Direct Annual Total Direct Labor-Hours Production Labor-Hours 1.8 DLHs per unit 5,000 units 9,000 DLHS 0.9 DLHs per unit 30,000 units 27.000 DLHS 36,000 DLHS Additional information about the company follows: a. Model X200 requires $72 in direct materials per unit, and model X99 requires $50. b. The direct labor workers are paid $20 per hour. The company has always used direct labor-hours as the base for applying manufacturing over- head cost to products. d. Model X200 is more complex to manufacture than model X99 and requires the use of special equipment. e. Because of the special work required in (d) above, the company is considering the use of activity-based absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Cost Pool Machine setups Special processing General factory Estimated Activity Measure Total Cost Number of setups $ 360,000 Machine-hours 180,000 Direct labor-hours 1.260,000 $1,800,000 Estimated Total Activity X200 X99 Total 50 100 150 0 12,000 9.000 27.000 36,000 12,000 Required: 1. Assume that the company continues to use direct labor-hours as the base for applying over- head 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 over- head cost that would be applied to each model using the activity-based approach. b. Compute the unit product cost of each model. 3. Explain why overhead cost shifted from the high-volume model to the low-volume model under the activity-based approach