Page of 130 6. Company manufactures two products, Product C and Product D. The company estimated it would incur $167,140 in manufacturing overhead costs during the current period. Overhead currently is applied to the products based on direct labor-hours. Data concerning the current period's operations appear below: Product C Product D Estimated Volume DL hours per unit DM cost per unit DL Cost per unit 2,000 units 2.00 hours $21.50 $24.00 2,700 units 0.80 hours $24.10 $9.60 a. Compute the predetermined overhead rate under the current method and determine the unit product cost of each product for the current year. Managerial Accounting Chapter 4 Page 12 Activity-Based Costing and Analysis b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor- hours. The activity based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: estructure.com/courses/24907/files/4051752?module_item_id=1415056 3 4 5 6 7 8 9 0 Page of 13 b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor- hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Activities Machine Setups Purchase Orders General Factory OH Cost $18,271 $85,750 $67,760 Product C 1600 750 4,000 Product D 500 1,000 ABC rate for Machine Setups: ABC rate for Purchase Orders: ABC rate for General Factory: Total Overhead Cost for Product C: Total Overhead Cost for Product D: Per-Unit Cost for Product C: Per-Unit Cost for Product D