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 55,000 units of EX300 and 12,000 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 $ 361,325 $ 115,000 TX500 $ 157,550 $ 40,000 Total $ 518,875 $ 155,000 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 $ 224,750 Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) 105,000 40,700 48,050 85,000 50 Activity TX500 60,000 250 Total 1 1 145,000 300 2 $ 115,000 $ 40,000 $ 155,000 Total manufacturing overhead cost $ 418,500 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 DLS < Req 1A Req 1B > 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.) Unit product cost EX300 TX500 < Req 1A Req 2A > 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 Activity Rate Machining per MHR Setups Product-level General factory per setup hour per product per DLS < Req 1B Req 2B > 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 < Req 2A Req 2B >