muiz Saved 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 flexible model requires 20 hours of direct labor time per unit, and the regular model requires 1.00 hours. Direct materials and labor costs per unit are given below: Direct materials cost per unit Direct labor cost per unit Flexible $120 S 35 Rigid $ 95 5 25 Required: 1-a Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products. 1-6. 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 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 $ 30,5ee 20,580 200,00 267, bee 5518,eee Expected Activity Flexible Rigid Total 125 485 51e 75 335 410 780 969 1,660 1,500 1,170 2,67e 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. Reg 1A Reg 1B Reg 2 Req 3A Reg 3B Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products. Predetermined overhead rate per DLH Reg 18 >