For many years, Thomson Company manufactured a single product called LEC $40.$ Then three years ago, the company

automated a portion of its plant and at the same time introduced a second product called LEC $90$ that has become

increasingly popular. The LEC $90$ is a more complex product, requiring $0\mathrm{.}80$ hours of direct labor time per unit to

manufacture and extensive machining in the automated portion of the plant. The LEC $40$ requires only $0\mathrm{.}40$ hours of direct

labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to

products on the basis of direct labor$-$hours.

Despite the growing popularity of the company's new LEC $90,$ profits have been declining steadily. Management is

beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor

costs per unit are as follows:

Direct materials

Management estimates that the company will incur $$728,000$ in manufacturing overhead costs during the current year

and $60,000$ units of the LEC $40$ and $20,000$ units of the LEC $90$ will be produced and sold.

Using the activity rates you computed in part $(2),$ do the following:

a$.$ Determine the per unit amount of manufacturing overhead cost that would be assigned to each product using the activity$-$based

costing system.

b$.$ Compute the unit product cost of each product.

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

Required information

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

Reg$3A$

Req$3B$

Using the activity rates you computed in part $(2),$ determine the per unit amount of manufacturing overhead cost that would be assigned to each product using the activity$-$based costing system. $($Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

Manufacturing overhead per unit of LEC $40$

Manufacturing overhead per unit of LEC $90$