Problem 4-12 Contrasting ABC and Conventional Product Cost [LO4-2, L04-3, L04-4] Precision Manufacturing Inc. (PMI) makes two types of industrial component partsthe EX300 and the TX500. It annually produces 56,000 units of EX300 and 12,100 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: Total Direct materials Direct labor EX300 $362,325 $116,000 TX500 $158,560 $ 40,500 $520,875 $156,500 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Activity Cost Pool Manufacturing (and Activity Measure) Overhead EX300 TX500 Total Machining (machine-hours) $219,750 86,000 60,500 146,500 Setups (setup hours) 113,400 55 260 315 Product-level (number of products) 54,970 1 1 2 General factory (direct labor dollars) 50,080 $116,000 $40,500 $156,500 Total manufacturing overhead cost $438,200 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. Computo the activity rate for each activity cost pool 2.b. Using the activity rates, compute the unit product cost for each product