Problem 4-12 Contrasting ABC and Conventional Product Cost (L04-2, L04-3, L04-4) Precision Manufacturing Inc. (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: EX300 Total Direct materials $361,325 $157,550 5510,875 Direct labor $115,000 $ 40,000 2X500 $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 Activity coat Pool and notivity Measure) Machining machine-hours) Setup (setup hours) Product-level number of products) General factory direct labor dollars) Total sanatatering overhead cost Manufacturing Overhead $224,750 105.000 40.700 IX300 85,000 50 1 $115,000 TX500 60,000 250 1 540,000 Total 145.000 300 0155,000 $410,500 Required: 1a Compute the plantwide overhead tate that would be used in the company's conventional cost system, 1b. Using the plantwide rate, compute the unit product cost for each product 2-. Compute the activity rate for each activity cost pool 2-6. Using the activity rates, compute the unit product cost for each product Complete this question by entering your answers in the tabs below. Reg LA Reg 2A Reg 26 Using the activity rates, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places) Unt producto Direct materials Direct labor $361,325 $115,000 $157,550 $ 40,000 $518,875 $155,000 The company is considering implementing an activity-based costing system that distributes all of its manufactu activities as shown below: Activity Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost Manufacturing Overhead EX300 $224,750 85,000 105,000 50 40,700 1 48,050 $115,000 $418,500 TX500 60,000 250 1 $40,000 Total 145,000 300 2 $155,000 int ences Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-6. 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. Reg 1A Reg 1B Req 2A Reg 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 hr. per product per DLS