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 partsthe EX300 and the TX500. It annually produces 67,000 units of EX300 and 13,200 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 $ 373,325 $ 127,000 TX500 $ 169,550 $ 46,000 Total $ 542,875 $ 173,000 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 $ 195,600 Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) 225,600 156,620 79,580 EX300 97,000 110 Activity TX500 66,000 370 1 1 Total 163,000 480 2 $ 127,000 $ 46,000 $ 173,000 Total manufacturing overhead cost $ 657,400 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.