Fisher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and Platinum. It applies all indirect costs

according to an annual predetermined rate based on direct labor$-$hours. The plant controller has recommended that the company

switch to an activity$-$based costing system. The controller's staff prepared the following cost estimates for next year $($year $2)$ for the

recommended cost drivers.

In addition, management estimated $45,000$ direct labor$-$hours for year $2.$

Assume that the following cost$-$driver volumes occurred in January. year $2$:

Labor costs are based on the contractual rate of $$25$ per hour.

Requlred:

a$.$ Compute the predetermined rate for year $2$ for use in the current product$-$costing system using direct labor$-$hours as the allocation

base.

b$.$ Compute the per$-$unit production costs for each model for January using direct labor$-$hours as the allocation base and the

predetermined rate computed in requirement $($a$).$

c$.$ Compute the predetermined overhead rate for year $2$ for each cost driver using the estimated costs and estimated cost driver 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 January using the cost drivers recommended by the consultant and the

predetermined rates computed in requirement $($c$).($Note: Do not assume that total overhead applied to products in January will be

the same for activity$-$based costing as it was for the labor$-$hour$-$based allocation.$)$

Complete this question by entering your answers in the tabs below.

Compute the per$-$unit production costs for each model for January using direct labor$-$hours as the allocation base and the

predetermined rate computed in requirement $($a$).$

Note: Do not round intermediate calculations. Round your unit cost answers to two decimal places.