Problem 3-12A Contrasting ABC and Conventional Product Costs Precision Manufacturing Inc. (PMI) makes two types of industrial component partsthe EX300 and the TX500. It annually produces 62,000 units of EX300 and 12,700 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 $ 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 Cost Pool (and Activity Measure) Manufacturing Overhead Activity EX300 TX500 Total Machining (machine-hours) $ 217,700 92,000 63,500 155,500 Setups (setup hours) 170,100 85 320 405 Product-level (number of products) 92,150 1 1 2 General factory (direct labor dollars) 66,200 $ 122,000 $ 43,500 $ 165,500 Total manufacturing overhead cost $ 546,150 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. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Unit Product Cost TX500_____ EX300_____ 2-a. Compute the activity rate for each activity cost pool. Activity Cost Pools/ Activity Rate Machining _____ per MH 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 Unit Production Cost EX300____ TX500____