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 S. Product W is the more complex of the two products, requiring one hour of direct labour time per unit to manufacture, compared to a half-hour of direct labour 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 labour hours. The company estimated it would incur $500,000 in manufacturing overhead costs and produce 10,000 units of Product W and 60,000 units of Product S during the current year. Unit cost for materials and direct labour are: Products Product W $24 Direct materials $10 $8 $12 Direct labour Required: a) Compute the predetermined overhead rate under the current method of allocation, and 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: Expected Activity Products Product W Total Activity Cost Pool Estimated Overhead Cost 2,000 $200,00 1.200 800 600 43,500 100 500 Machine setups required Purchase orders issued Machine hours required Maintenance requests issued 104,000 3,000 13,000 10,000 152.500 860 1,140 2,000 Total $500,000 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year