Jacarda Company makes a composting bin that is subject to wide seasonal variations in demand. Unit product costs are computed on a quarterly basis by dividing each quarter's manufacturing costs (materials, labour, and overhead) by the quarter's production in units. The company's estimated costs, by quarter, for the coming year are given below: First Quarter Second Third Fourth Direct materials Direct labour Manufacturing overhead Total manufacturing costs Number of units to be produced Estimated unit product cost $162,000 $ 81,000 $ 40,500 $121,500 81,000 40,500 20,250 60,750 121,500 94,500 81,000 108,000 $364,500 $216,000 $141,750 $290,250 90,000 45,000 22,500 67,500 $ 4.05 $ 4.80 $ 6.30 $ 4.30 Management finds the variation in unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead, since it is the largest element of cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. After some analysis, you have determined that the company's overhead costs are mostly fixed and therefore show little sensitivity to changes in the level of production. Required: 1. Calculate the predetermined overhead rate based on units and direct labour? (Round your "per unit" answer to 2 decimal places.) Predetermined overhead rate-unit of product per unit Predetermined overhead rate-basis on direct labour cost % 2. Recompute the company's unit product costs in accordance with rate per unit in (1) above. (Round your answers to 2 decimal places.) Quarter First Second Third Fourth Estimated unit product cost