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Puget Worid, Incorporated, manufactures two models of television sets, the N 800XL model and the N 500 model. Data regarding the two products follow: Additional

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Puget Worid, Incorporated, manufactures two models of television sets, the N 800XL model and the N 500 model. Data regarding the two products follow: Additional information about the company follows: a. Model N800XL requires $75 in direct materials per unit, and Model N500 requires $35. b. The direct labor wage rate is $18 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost poois have been identified as follows: 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. (1). Compute the activity rate for each activity cost pool. (2). Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. b. Compute the unit product cost of each model

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