Precision Manufacturing Inc. (PMI) makes two types of industrial component partsthe EX300 and the TX500. It annually produces 52,000 units of EX300 and 11,700 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: EX300 TX500 Total Direct $ 358, 325 $154,550 $512,875 materials Direct labor $112,000 $ 38,500 $150,500 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Total 140,500 255 Activity Activity Cost Pool Manufacturing (and Activity Measure) Overhead EX300 TX500 Machining (machine- $ 161,575 82,000 58,500 hours) Setups (setup hours) 81,600 35 220 Product-level (number of 77,390 1 1 products) General factory (direct labor dollars) 40,635 $112,000 $38,500 Total manufacturing $361,200 overhead cost 2 $150,500 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the plantwide overhead rate that would be used in the company's conventional cost system. (Round your answer to 2 decimal places.) Predetermined overhead rate per DL$ Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B 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 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the activity rate for each activity cost pool. (Round your Machining and General factory activity rates to 2 decimal places.) Activity Cost Pools Machining Setups Product-level General factory Activity Rate per MHR per setup hr. per product per DL$ Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B 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
