Marble, Inc manufactures a product that is available in both a flexible and a ngid model. The company has made the ngid model for years, the flexible model was introduced several years ago to tap a new segment of the market Since introduction of the flexoble model the company's profits have steadily declined, and management has become concemned about the accuracy of its costing system Sales of the flexible model have been increasing rapidly Overhead is applied to products on the basis of direct labor-hours. At the beginning of the current year, management estimated that 5600,000 in overhead costs would be incurred and the company would produce and sell 1,000 units of the flexible model and 10,000 units of the regular model The flexible model requires 2 hours of direct labor time per unit, and the regular model requires 1 hour. Direct materials and labor costs per unit are given below. Flexible $110.00 $30.00 Rigid $80.00 Direct materials cost per unit Direct labor cont per unit $1500 Required: 12 points) Compute the predetermined overhead rate using direct labor hours as the basis for allocating overhead costs to products, Compute the unit product cost for one unit of each model 2 (2 points) An intern suggested that the company use activity based costing to cost its products. A team was formed to investigate this idea it came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are listed as follows Expected Activity Flexible Rigid Total 100 300 400 Estimated Activity Cost Pool and Activity Measure Overhead Cost Purchase orders (number of orders).... $ 20,000 Rework requests (number of requests). 10,000 Product testing (number of testo) 210,000 Machine related machine hours) 360.000 5600.000 60 140 200 900 1200 2.100 1.500 2.500 4.000 Compute the activity rate for each of the activity cost pools