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Please help me with the questions below Cosgrove Company manufactures two products, Product K-7 and Product L-15. Product L-15 is of fairly recent origin, having

Please help me with the questions below

Cosgrove Company manufactures two products, Product K-7 and Product L-15. Product L-15 is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product K-7. Product L-15 is the more complex of the two products, requiring 2 hours of direct labor time per unit to manufacture compared to 1 hour of direct labor time for Product K-7. Product L-15 is produced on an automated production line.
Overhead currently is applied to the products on the basis of direct labor-hours. The company estimated it would incur $659,973 in manufacturing overhead costs and produce 14,600 units of Product L-15 and 58,400 units of Product K- 7 during the current year.


Unit costs for materials and labor are:

Product K-7 Product L-15
Direct material $ 12 $ 29
Direct labor $ 7 $ 20


Required:
a-1

Compute the predetermined overhead rate under the current method. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

.
Predetermined overhead rate $

a-2

Determine the unit product cost of each product for the current year. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)


Unit Product Cost
Product K-7 $
Product L-15 $


b.

The company is considering the use of activity-based costing as an alternative to its traditional costing method for manufacturing overhead. Data relating to the company's activity cost pools for the current year are given below:


Total Cost Product K-7 Product L-15 Total
Machine setups required $ 255,000 900 1,650 2,550
Purchase orders issued 54,677 565 184 749
Machine-hours required 163,620 7,410 10,770 18,180
Maintenance requests issued 186,676 721 861 1,582


$ 659,973






Using the data above, determine the unit product cost of each product for the current year. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)


Product K-7 Product L-15
Direct materials $ $
Direct labour
Manufacturing overhead
Total unit product cost

$


$






Show the working please

thank you

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