just answer question 2... 1 and 3 is a bonus if you tackle them thanks a lot.

Traditional and ABC Costing The Patio Heating Company manufacturers two outdoor heaters, Warmer and Hotter. Hotter is a newer heater, having been developed as a more complex version of Warmer. Hotter requires 3 direct labour hours per heater to manufacture, compared to 1.5 direct labour hours per heater for Warmer. Hotter is produced on a highly automated production line. The Patio Heater Company prices both heaters using the unit product cost plus a mark-up of 30 percent. Overhead is currently assigned to the heaters on the basis of direct labour hours. The company estimated it would incur $396,000 in manufacturing overhead costs and produce 5,500 of Hotter and 22,000 of Warmer during the current year. Unit costs for materials and direct labour are: Warmer Hotter Direct Materials $9.00 $20.00 Direct Labour $7.50 $15.00 Write nearly and show all of your work. Round numbers to the nearest whole cent (50.00). 1. Compute the following for The Patio Heater Company under the current method of allocation: a) The predetermined overhead rate. (2 Marks) b) The unit product cost for each heater for the current year. (3 Marks) c) The selling price for each heater. (2 Marks) 2. The company's overhead costs can be allocated to four major activities. These activities, and the amount of overhead cost allocated to each, for the current year are given below: Estimated Expected Activity Activity Cost Pools Overhead Costs Warmer Hotter Total Machine setups required $170,000 700 1,000 1,700 Purchase orders issued $ 37,000 300 200 500 Machine-hours required $ 91.000 4,000 9.000 13,000 Maintenance requests issued $ 98,000 100 500 1,000 $396,000 Using the data above and an activity-based costing approach, compute the following: a) The unit product cost for each heater for the current year. (12 Marks) b) The selling price for each heater. (2 Marks)