Formany 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, requining 060 hours of direct labor nme per unit to manufacture and extensive machining in the automated portion of the plant the LEC 40 requires only. 020 houts of direc: 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 popularty of the company's new LEC 90, proftis have been declining steadily Management is beginning to believe that there may be a problem with the company's cosing system Directmaterial and direct labor costs perunit are as follows management estimates that the company will incur $872,000 in manufacturing overhead costs during the current year and 80.000 units of the LEC 40 and 40,000 units of the LEC 90 wir be produced and sold. Problem 4-16 (Algo) Part 3 3.ing the activity rates you computed in part (2), do the following: 1. Determine the per unit amount of manufacturimg overhead cost that would be assigned to each product using the activity based costing system: Compute the unit product cost of each product. Complete this question by entering your answers in the tabs below. Using the activity rates you cornputed in part (2), detemine the per unit smount of manufacturing ovorhead cost that would be assigned to each product using the activity bised costing system. foonot found intermediate calculaticns. Round your Required: 1-a. Compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on thi basis of direct labor-hours. 1-b. Using this rate and other data from the problem, determine the unit product cost of each product Complete this question by entering your answers in the tabs below. Compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on the basis of direct labor-hours. (Round your answer to 2 decimal places.) 2. Management is considering using activity based costing to assign manufacturing overhead cost to product5. The activity-based costing system would have the following four activity cost pools: Determine the activity rate for each of the four activity cost pools. (Round your answers to 2 decimal places.) 3. 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. Using the activity rates you computed in part (2), compute the unit product cost of each product. (Ood not round intemediate calculations. Round your final answers to 2 decimal places) 1.a. Compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on the basis of direct labor-hours: 1-b. Using this rate and other data from the problem, determine the unit product cost of each product. Complete this question by entering your answers in the tabs below. 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.) Required information Problem 4.16 (Algo) Contrasting ABC and Conventional Product Costs [LO4-2, LO4-3, LO4-4] [The following hifomaton applies to the questians displayed below] For many years, Thomson Company manufactured a single product called LEC 40 . Then three years ago, the company autornated a portion of lis 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 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 020 hours of direct labor time per unit and only a small amount of machining. Manufacturing overbead costs are currently assigned to products on the basis of direct labor-hours: Desplte the growing popularity of the company's. new LEC 90 , profits have been dectining steadily. Management is beginning to betleve that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows Management estimates that the company will incur $872,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold roblem 4-16 (Aigo) Part 2 Management is considening using activity based costing to assign manufacturing overhead cost to products: The activity based osting system would have the following four activity cost pools: 3. 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-base costing system. b. Compute the unit product cost of each product. Complete this question by entering your answers in the tabs below. Using the activity rates you computed in part (2), determine the per unit amount of manufacturing overbead 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.) Required informotion Problem 4-16 (Algo) Contrasting ABC and Conventional Product Costs [LOA-2, LO4-3, LO4.4] [The following information applies to the questions displayed beiow] 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 060 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct tabor 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 populatity 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 Direct Iabor (9.20 hours and Q.69 hours 8. \$15.99 per hour) KFC46520.0059.00ISC90$48.0059.69 Management estimates that the company will incur $872,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold. Problem 4-16 (Algo) Part 1 Required: Compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on the pasis of direct labor-hours: b. Using this rate and other data from the problem, determine the unit product cost of each product. Complete this question by entering your answers in the tabs below. Neing thils rate and other data from the probiem, determine the unit product cost of each product. (Do not found intumediaten calculationit. Round your final answors to a decimal ptsces.)