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Problem 4-15 (Algo) Contrasting ABC and Conventional Product Costs [LO4-2, LO4-3, LO4. Marine, Incorporated, manufactures a product that is avallable in both a flexible and a rigid model. The company has m. model for years: the flexible model was introduced several years ago to tap a new segment of the market. Since introd. flexible model, the company's profits have steadily declined, and management has become concerned about the accur costing system. Sales of the flexible model have been increasing rapidily Overhead is applied to products on the basis of direct labor thours. At the beginning of the current yeat, management es $870,000 in overhead costs would be incurred and the company would produce and sell 1,000 units of the flexible mod units of the regular model The flexple model requires 3.0 hours of direct labor time per unit, and the regular model requ hours. Direct materials and labor costs per unit are given below. Required: 1.a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to prodt 1.b. Compute the unit product cost for one unit of each model. 2. An intern suggested that the company use activify-based costing to cost its products. A team was formed to investigate came back with the recommendotion that four activity cost poois be used. These cout pools and their associated activities follows Uverneaa is appllea to proaucts on the Dasis or airect Iabor-nours. At the peginnng or the curren $870,000 in overhead costs would be incurred and the company would produce and sell 1,000u units of the regular model. The flexible model requires 3.0 hours of direct labor time per unit, and hours. Direct materials and labor costs per unit are given below: Required: 1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating ov 1-b. Compute the unit product cost for one unit of each model. 2. An intern suggested that the company use activity-based costing to cost its products. A team was came back with the recommendation that four activity cost pools be used. These cost pools and their follows: Compute the activity rate for each of the activity cost pools. 3-a. Using activity-based costing. determine the total amount of overhead that would be assigned to eac 3b. Using activity-based costing, compute the unit product cost for one unit of each modef Compute the activity rate for each of the activity costpools 3-a. Using activity-based costing, determine the total amount of overhead that would be assigned to each mo 3-b. Using activity-based costing. compute the unit product cost for one unit of each model. Complete this question by entering your answers in the tabs below. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead sosts to produ Problem 4-15 (Algo) Contrasting ABC and Conventional Product Costs [LO4-2, LO4-3, LO4. Marine, Incorporated, manufactures a product that is avallable in both a flexible and a rigid model. The company has m. model for years: the flexible model was introduced several years ago to tap a new segment of the market. Since introd. flexible model, the company's profits have steadily declined, and management has become concerned about the accur costing system. Sales of the flexible model have been increasing rapidily Overhead is applied to products on the basis of direct labor thours. At the beginning of the current yeat, management es $870,000 in overhead costs would be incurred and the company would produce and sell 1,000 units of the flexible mod units of the regular model The flexple model requires 3.0 hours of direct labor time per unit, and the regular model requ hours. Direct materials and labor costs per unit are given below. Required: 1.a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to prodt 1.b. Compute the unit product cost for one unit of each model. 2. An intern suggested that the company use activify-based costing to cost its products. A team was formed to investigate came back with the recommendotion that four activity cost poois be used. These cout pools and their associated activities follows Uverneaa is appllea to proaucts on the Dasis or airect Iabor-nours. At the peginnng or the curren $870,000 in overhead costs would be incurred and the company would produce and sell 1,000u units of the regular model. The flexible model requires 3.0 hours of direct labor time per unit, and hours. Direct materials and labor costs per unit are given below: Required: 1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating ov 1-b. Compute the unit product cost for one unit of each model. 2. An intern suggested that the company use activity-based costing to cost its products. A team was came back with the recommendation that four activity cost pools be used. These cost pools and their follows: Compute the activity rate for each of the activity cost pools. 3-a. Using activity-based costing. determine the total amount of overhead that would be assigned to eac 3b. Using activity-based costing, compute the unit product cost for one unit of each modef Compute the activity rate for each of the activity costpools 3-a. Using activity-based costing, determine the total amount of overhead that would be assigned to each mo 3-b. Using activity-based costing. compute the unit product cost for one unit of each model. Complete this question by entering your answers in the tabs below. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead sosts to produ