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 hours 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 $1,140,940 in manufacturing overhead costs and produce 10,500 units of Product W and 42,000 units of Product S during the current year. Unit cost for materials and direct labor are:

	Product S			Product W
Direct material	$	17		$	34
Direct labor		8			14

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	$	652,210	1,510	2,260	3,770
Purchase orders issued		51,975	531	162	693
Machine-hours required		112,140	7,900	10,790	18,690
Maintenance requests issued		324,615	737	878	1,615
	$	1,140,940

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