Marine, Incorporated, manufactures a product that is avallable In both a flexible and a rigid model. The company has made the rigid model for years; the flexlble 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 flexlble 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 $518,000 in overhead costs would be incurred and the company would produce and sell 2,000 units of the flexible model and 10,000 units of the regular model. The flexlble model requires 2.0 hours of direct labor time per unlt, and the regular model requires 1.00 hours. Direct materlals and labor costs per unit are given below: 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 unlt product cost for one unlt of each model. 2. An Intern suggested that the company use actlvity-based costling to cost its products. A team was formed to Investigate this Idea. It came back with the recommendatlon that four actlvity cost pools be used. These cost pools and thelr assoclated actlvitles are listed a: follows: Compute the actlvity rate for each of the activity cost pools. 3-a. Using actlivity-based costing. determine the total amount of overhead that would be assigned to each model for the year. 3-b. Using actlvity-based costing. compute the unlt product cost for one unit of each model. Complete this question by entering your answers in the tabs below. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products