Marine, Incorporated, 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. 10.000 Overhead is applied to products on the basis of direct labor-hours. At the beginning of the current year, management estimated that $672,000 in overhead costs would be incurred and the company would produce and sell 2,000 units of the flexible model units of the regular model. The flexible model requires 3.0 hours of direct labor time per unit, and the car model requ hours. Direct materials and labor costs per unit are given below: Direct materials cost per unit Flexible $ 135 $ 30 Rigid $ 80 $ 15 Direct labor cost per unit Required: 1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products. 1-b. Compute the unit product cost for one unit of each model. 2. 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: Estimated Activity Cost Pool and Activity Measure Purchase orders (number of orders) Revork requests (number of requests) Product testing (number of tests) Machine related (machine-hours) Expected Activity $ 25,000 15,000 235,000 Overhead Cost Flexible 150 85 Rigid Total 475 290 625 375 700 397,000 1,400 1,180 2,570 1,880 3,970 $ 672,000 Compute the activity rate for each of the activity cost pools. 3-a. Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year. 3-b. Using activity-based costing, compute the unit product cost for one unit of each model. Complete this question by entering your answers in the tabs below. Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine related (machine-hours) Estimated Overhead Cost Flexible Expected ACTIVITY Rigid Total $ 25,000 150 475 625 15,000 85 290 375 235,000 700 1,180 1,880 397,000 1,400 2,570 3,970 $ 672,000 Compute the activity rate for each of the activity cost pools. 3-a. Using activity-based costing, determine the total amount of overhead that would be assigned to each model for 3-b. Using activity-based costing, compute the unit product cost for one unit of each model. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3A Req 38 Compute the unit product cost for one unit of each model. Unit Product Flexible Rigid Cost 47 3-b. Using activity-based costing, compute the unit product Complete this question by entering your answers in th Req 1A Req 1B Req 2 Req 3A R Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Purchase orders per order Rework requests per request Product testing per test Machine-related per MH < Req 1B Req 1A Req 18 Req 2 Req 3A Req 38 Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year. Total Amount of Overhead Flexible Rigid assigned to each model for the year. Costing, compute the unit product cost for one unit of each model. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2 Req 3A Req 38 Using activity-based costing, compute the unit product cost for one unit of each model. (Do not round intermediate calculations and round your answers to 2 decimal places.) Unit Product Cost Flexible Rigid