For many years, Yelena Company manufactured a single product called a Mono-Relay. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called a Bi-Relay that has become increasingly popular. The Bi-Relay is a more complex product, requiring 1.00 hour of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The Mono-Relay requires only 0.50 hour 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 companys new Bi-Relay, profits have been declining steadily. Management is beginning to believe that there may be a problem with the companys costing system. Materials and labor costs per unit are given below:

	Mono-Relay			Bi-Relay
Direct materials	$	50.00		$	65.00
Direct labor (0.50 hour and 1.00 hour @ $9.00 per hour)	$	4.50		$	9.00

Management estimates that the company will incur $643,200 in manufacturing overhead costs during the current year and 18,000 units of the Mono-Relay and 7,000 units of the Bi-Relay will be produced and sold.

3.

value: 0.50 points

Required information

Required:
1-a.	Compute the predetermined manufacturing overhead rate assuming that the company continues to apply manufacturing overhead cost on the basis of direct labor-hours. (Round your final answer to 2 decimal places.)

1-b.	Using this rate and other data from the problem, determine the unit product cost of each product. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)