Problem 1 (50%) John Company manufactures two products, Product A-8. Product B-18 and Product C-25. Product B-18 was developed recently in an attempt to enter a new market segment. John adopts a simple costing system and uses normal costing system to compute the cost of each product A single plant-wide overhead application rate is used based on direct labor hours. The company estimated it would incur $1,000,000 in manufacturing overhead costs and produce 10,000 units of Product A-8. 20,000 units of Product B-18 and 30,000 units of Product C-25 during the current year. Actual unit costs for direct materials and direct labor and the budgeted direct labor hours used to produce each unit of product are: Direct material Direct labor Direct labor hours to produce 1 unit Product A-8 S22 $8 3 hours Product B-18 $20 $15 2 hour Product C-25 $30 18 1 hour Required: (Put your answers in the empty spaces provided after each question. Show all the necessary workings) 1. Compute the predetermined overhead rate under the current method. (check answer $10) predetermined Overland rate 2. Determine the unit product cost of EACH product for the current year under the simple costing system Product A-8 Product B-18 Product C-25 Direct material 22 ze Direct labor 8 118 MOH 15 20 $55 Unit product cost