LMN Corporation manufactures two products, Product A and Product B. Product B is fairly new, having been developed as an attempt to enter a market closely related to that of Product A. Product B is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 1.5 hours of direct labor time for Product A. Overhead is currently assigned to the products on the basis of direct labor-hours. The company estimated it would incur a total of $396,000 in manufacturing overhead costs and produce 5,500 units of Product B and 22,000 units of Product A during the current year. Unit costs for materials and direct labor are: Direct material Direct labor Product A $9 $7 Product B $20 $15 Questions a) Calculate the predetermined overhead rate under the current method of allocation and determine the unit product cost of each product for the current year. b) The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Activity Cost Pools Machine setups required Purchase orders issued Machine-hours required Maintenance requests issued Expected Activity Estimated Overhead Cost Product A Product B Total $170,000 700 1,000 1,700 37,000 300 200 500 91,000 4,000 9,000 13,000 98,000 400 600 1,000 $396.000 Using the data above and an activity-based costing approach, determine the unit product cost for product A for the current year