precision manufacturing inc. (pmi) maked two types of industrial component parts-the EX300 and the TX500.

Precision Manufacturing Inc. (PMI) makes two types of industrial component parts the EX300 and the TX500. It annually produces 63,000 units of EX300 and 12,800 units of TX500. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below. Direct materials Direct labor EX300 $369,325 $123,000 TX500 $165,550 $ 44,000 Total $534,875 $167.000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Manufacturing Overhead $ 227,650 180,600 91,080 68,470 EX300 93,000 TX500 64,000 330 Total 157,000 420 $123,000 $ 44,000 $ 167,000 Total manufacturing overhead cost $ 567,800 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system (Round your answer to 2 decimal places.) Predetermined overhead s 3.40 per DLS rate 1-b. Using the plantwide rate, compute the unit product cost for each product. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) EX300 TX500 Unit product cost 2-a. Compute the activity rate for each activity cost pool. (Round your Machining and General fi activity rates to 2 decimal places.) Activity Cost Pools Machining Setups Product-level General factory Activity Rate $ 1.45 per MH ($ 430 per setup hr. $ 45,540 per product $ 0.41 per DLS 2-b. Using the activity rates, compute the unit product cost for each product. (Do not round intermed. calculations. Round your answers to 2 decimal places.) EX300 TX500 Unit product cost