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Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow:
Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow: Direct Labor- Annual Total Direct Hours per Unit Production Labor-Hours 3,500 units 12,500 units 8,750 16,250 Model N 800 XL 2.5 Model N 500 1.3 25,000 Additional information about the company follows: a. Model N 800 XL requires $65 in direct materials per unit, and Model N 500 requires $25 b. The direct labor wage rate is $16 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 pools have been identified as follows: Activity Estimated Activity Cost Pool Machine setups Overhead Cost Measure Number of setups $510,000 230,000 Special processing Machine-hours Direct labor- General factory 1,410,000 hours $2,150,000 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the unit product cost of each model. (Round your answers to 2 decimal places.) Model N 800 XL Model N 500
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