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

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EMD Corporation manufactures two products, Product S and Product W Product W is of fairly recent origin, having been developed 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 ar automated production line Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $1,139421 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 Direct material Direct labor 5 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 tivity Cost Poo Total 643,440 8,266 221,640 216 975 3,139 421 Tota 3,830 747 18,470 1,675 1,590 Purchase orders Issued Machine-hours required alntenance requests issued 2,240 192 10,710 939 7,760 736

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