Management nds the variation in unit product costs to be confusing and difcult 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.) per unit Predeterminad overhead rateunit of product Predetermined overhead raterbasis 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.) -l-l-l-| Exercise 5-11 Varying Predetermined Overhead Rates [L03, L05] 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: Quarter First Second Third Fourth Direct materials $ 533,699 $315,899 $158,499 $ 475,299 Direct labour 316,899 158,499 79,299 237,699 Manufacturing overhead 417,699 388,899 374,499 493,299 Total manutatturing costs $1,358,999 $854,999 $512,999 $1,115,999 Number of units to he produced 96,999 48,699 24,999 72,999 Estimated unit product cost $ 14.25 $ 18.99 $ 25.59 $ 15.59 Management nds the variation in unit product costs to be confusing and difcult 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.) Predeiermined overhead rate-unit of product per unit \"A. Predelermined overhead rateabasis on direct labour cost