Precision Manufacturing Inc. $($PMI$)$ makes two types of industrial component parts$$the EX$300$ and the TX$500.$ It annually produces $62,000$ units of EX$300$ and $12,700$ units of TX$500.$ The company$$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:

EX$300$ TX$500$ Total

Direct materials $ $368,325$ $ $164,550$ $ $532,875$

Direct labor $ $122,000$ $ $43,500$ $ $165,500$

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$)$ Manufacturing

Overhead EX$300$ TX$500$ Total

Machining $($machine$-$hours$)$ $ $217,70092,00063,500155,500$

Setups $($setup hours$)170,10085320405$

Product$-$level $($number of products$)92,150112$

General factory $($direct labor dollars$)66,200$ $ $122,000$ $ $43,500$ $ $165,500$

Total manufacturing overhead cost $ $546,150$

Required:

$1-$a$.$ Compute the plantwide overhead rate that would be used in the company$$s conventional cost system.

$1-$b$.$ Using the plantwide rate, compute the unit product cost for each product.

$2-$a$.$ Compute the activity rate for each activity cost pool.

$2-$b$.$ Using the activity rates, compute the unit product cost for each product.