Ive done the first part. Need help with the second part. Thank you!

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 0.80 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.40 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 companys new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the companys costing system. Direct material and direct labor costs per unit are as follows:

	LEC 40		LEC 90
Direct materials	$	30.00	$	50.00
Direct labor (0.40 hours and 0.80 hours @ $15.00 per hour)	$	6.00	$	12.00

Management estimates that the company will incur $912,000 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.

Required:

1-a.

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.)

Answer: Pre-determined OH Rate: 22.80 per DLH

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.)

Answer: Unit Product Cost LEC 40: $45.12 and Unit Product Cost LEC 90: $80.24

Using the activity rates you computed in part (2) above, 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. (Round your answers to 2 decimal places.)

Manufacturing Overhead per unit of LEC 40: ________

Manufacturing Overhead per unit LEC 90: _________

b.	Compute the unit product cost of each product. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Unit product costs for LEC 40: _____ Unit product costs for LEC 90: ______