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Fisher Fixtures manufactures three types of lighting fictures, with model names of Stver, Goid, and Piatinum. It applies all indirect costs according to an annual

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Fisher Fixtures manufactures three types of lighting fictures, with model names of Stver, Goid, and Piatinum. It applies all indirect costs according to an annual prederermined rate based on direct labor-hours. The plant controller has recommended that the company switch to an activity-based costing system. The controller's staft prepared the following cost estimates for next year iyear 2 for the recommended cost drivers. In addition, management estimated 45,000 direct labor hours for yest 2 Assume that the following cost-dtiver volumes occurred in January, year 2 . Labor costs are based on the contractual rate of 525 per hour Required: a. Compute the predetermined rate for year 2 for use in the current producf-costing system using direct labor-hours as the allioseton base. b. Compute the per-unit production costs for each modet for Janvery using direct labor-hours as the allocation base and the predetermined rote computed in requirement (a). c. Compute the predetermined overhead rate for yeor 2 for each cost driver using the estimated costs and estimated cost sinur units prepared by the controller's staff to be used in an ABC system. d. Compute the per unit production costs for each product for Jenuary using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (c) (Note. Do not assume thet total overhaad applied to products in Janiaiy wili be the same for activity-based costing as it was for the labor hour-bosed allocation) Complete this question by entering your answers in the tabs below. Compute the predetermined rate for year 2 for use in the current product-costing system using direct labor-bours as the

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