EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having 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 of 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 would incur $1,111,943 in manufacturing overhead costs and produce 17,300 units of Product W and 86,500 units of Product S during the current year. Unit cost for materials and direct labor are:

	Product S			Product W
Direct material	$	19		$	27
Direct labor		10			18

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:

			Total Activity
Activity Cost Pool	Total Cost		Product S	Product W	Total
Machine setups required	$	567,630	1,220	2,490	3,710
Purchase orders issued		45,471	514	145	659
Machine-hours required		186,200	7,420	11,200	18,620
Maintenance requests issued		312,642	680	899	1,579
	$	1,111,943

Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year.

Compute the predetermined overhead rate under the current method of allocation. (Round your answer to 2 decimal places.)

Determine the unit product cost of each product for the current year. (Round your answers to 2 decimal places.)

Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.)