Precision Manufacturing Inc. (PMI) makes two types of industrial component partsthe EX300 and the TX500. It annually produces 58,000 units of EX300 and 12,300 units of TX500. The companys 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 companys two product lines is shown below:

	EX300			TX500			Total
Direct materials	$	364,325		$	160,550		$	524,875
Direct labor	$	118,000		$	41,500		$	159,500

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			EX300			TX500			Total
Machining (machine-hours)	$	209,300			88,000			61,500			149,500
Setups (setup hours)		131,100			65			280			345
Product-level (number of products)		83,870			1			1			2
General factory (direct labor dollars)		54,230		$	118,000		$	41,500		$	159,500
Total manufacturing overhead cost	$	478,500

Required:

1-a. Compute the plantwide overhead rate that would be used in the companys 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.

1-a.

Compute the plantwide overhead rate that would be used in the companys conventional cost system. (Round your answer to 2 decimal places.)

Predetermined overhead rate. Per DL$

1-b.

Using the plantwide rate, compute the unit product cost for each product. (Round your intermediate calculations and final 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 factory activity rates to 2 decimal places.)

Activity Cost Pools	Activity Rate
Machining		per MHR
Setups		per setup hr.
Product-level		per product
General factory		per DL$

2-b.

Using the activity rates, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.)

	EX300	TX500
Unit product cost