Problem 4-12 (Algo) Contrasting ABC and Conventional Product Cost [LO4-2, LO4-3, LO4-4] Precision Manufacturing Incorporated (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 57,000 units of EX300 and 12,200 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. Direct materials Direct labor EX300 TX500 Total $ $ 363,325 159,550 522,875 $ 41,000 117,000 158,000 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. Activity Overhead EX300 TX500 Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) $ 214,600 87,000 61,000 Total 148,000 122,100 60 270 330 69,360 1 1 2 $ $ $ 52,140 117,000 41,000 158,000 Total manufacturing overhead cost $ 458,200 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 DLS Problem 4-12 (Algo) Contrasting ABC and Conventional Product Cost [LO4-2, LO4-3, LO4-4] Precision Manufacturing Incorporated (PMI) makes two types of industrial component parts-the EX300 and the TX500.. It annually produces 57,000 units of EX300 and 12,200 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. Direct materials Direct labor EX300 TX500 Total $ 363,325 159,550 522,875 $ 117,000 $ 41,000 158,000 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) Machining (machine-hours) Manufacturing Overhead EX300 Activity TX500 Total $214,600 87,000 61,000 148,000 Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) 122,100 60 270 330 69,360 1 1 2 $ $ $ 52,140 117,000 41,000 158,000 Total manufacturing overhead cost $ 458,200 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 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 < Req 1A Req 2A > Problem 4-12 (Algo) Contrasting ABC and Conventional Product Cost (LO4-2, LO4-3, LO4-4] Precision Manufacturing Incorporated (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 57,000 units of EX300 and 12,200 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 materials $ $ $ 363,325 159,550 522,875 $ $ 41,000 117,000 158,000 Direct labor The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below. Machining (machine-hours) Setups (setup hours) Product-level (number of products) Activity Cost Pool (and Activity Measure) Manufacturing Overhead Activity EX300 TX500 Total $ 214,600 87,000 61,000 148,000 122,100 60 270 330 69,360 1 1 2 $ $ $ 52,140 117,000 41,000 158,000 $ 458,200 General factory (direct labor dollars) Total manufacturing overhead cost 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 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 hour per product per DLS < Req 18 Req 2B > Problem 4-12 (Algo) Contrasting ABC and Conventional Product Cost [LO4-2, LO4-3, LO4-4] Precision Manufacturing Incorporated (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 57,000 units of EX300 and 12,200 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 materials $ 363,325 159,550 522,875 Direct labor 117,000 $41,000 $ 158,000 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. Activity Overhead EX300 TX500 Machining (machine-hours) $214,600 87,000 61,000 Total 148,000 Setups (setup hours) 122,100 60 270 330 Product-level (number of products) 69,360 1 1 2 General factory (direct labor dollars) $ $ $ 52,140 117,000 41,000 158,000 Total manufacturing overhead $ 458,200 cost 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 Rec2B 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 < Req 2A Rog 28 >