Problem 4-12 Contrasting ABC and Conventional Product Cost [LO4-2, LO4-3, L04-4] Precision Manufacturing Inc. (PMI) makes two types of industrial component partsthe EX300 and the TX500. It annually produces 60,000 units of EX300 and 12,500 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 $366,325 $120,000 TX500 $162,550 $ 42,500 Total $528,875 $162,500 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) $198,250 90,000 62,500 152,500 Setups (setup hours) 150,000 75 300 375 Product-level (number of products) 100,250 2 General factory (direct labor dollars) 60,125 $120,000 $42,500 $162,500 Total manufacturing overhead cost $508,625 1 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. Reg 1A o 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 Complete this question by entering your answers in the tabs below. Reg 1B 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 Complete this question by entering your answers in the tabs below. Req 2A 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 Setups Product-level General factory Complete this question by entering your answers in the tabs below. 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