Marine, Inc., manufactures a product that is available in both a flexible and a rigid model. The company has made the rigid model for years; the flexible model was introduced several years ago to tap a new segment of the market. Since introduction of the flexible model, the company's profits have steadily declined, and management has become concerned 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 $600,000 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 rigid model. The flexible model requires 2.0 hours of direct labor time per unit, and the rigid model requires 1.0 hours. Direct materials and labor costs per unit are given in the picture:

how did we get 50 as a result in question (1), and 240-145 in question 2

Flexible Rigid 110.00 80.00 Direct materials cost per unit $ $ 15.00 Direct labor cost per unit $ 30.00 $ Required: [3. Compute the predetermined overhead rate using direct laborhours as the basis for aliocating overhead costs to products. lb. Compute the unit product cost for one unit of each modei. . Flexible s 240.] | Rigid s 145.]