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EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, havi been developed as an attempt to enter

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EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, havi been developed as an attempt to enter a market closely related to that of Product W.Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 2 hour o direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it woule ncur $1139.421 in manufacturing overhead costs and produce 15,000 units of Product W and 75,000 units of Product S during the current year. Unit cost for materials and direct labor are: es Direct material Direct labor s 17 s 24 13 Required: a-1. Compute the predetermined overhead rate under the current method of allocation. a-2. Determine the unit product cost of each product for the current year b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below Activity Cost Poo1 Total Cost 643,440 58,266 221,640 216.075 1-139 47 Tota 3,830 Machine setups required Purchase orders Issued Machine-hours required Maintenance requests issued 2,240 192 10,710 939 1,590 747 ,760 736 18,470 1,675

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