For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of Rs 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 80 hours of drect labor time per unitl to mandacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.40 hours of direct labor time per unil and only a small amount of machining Manufacturing overhead costs are cumenty assigned to products on the basis of direct labor hours Despite the growing popularity of the companys new LEC 90, profits have been dedlining steadiy Management is beginning to believo that there may beproblem wene compayscostingsystem Daed material and direct labor costs per unit ane as follow LEC 40 LEC 0 Direct mater Drect labor (o.40 hours and 0.80 hours o $15.00 per hour $30.00 3600 $5000 6.00 $12.00 Management estimates thet the company will Incur $912.000 in manufacturing overhead costs during the carent year and 60,000 units of the LEC 40 and 20.000 units o the LEC 90 will be produced and sold 912.000 Expected Acdivity LEC 40LEC 0 Total Acivity Measure 1,500 2,800 2,250 8,400 10,000 1,750 1,600 Determine the activity rate for each of the four activity cost pools Activity Rate Activity Cost Pool per part type per order per test per MH Quality control References eBook&Resources Learning Objective: 03-02 Learning Objective: 03-04 Contrast the prod Compute activity rates for an computed under activity-based costing and activity-based costing system Worksheet costing methods