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 Total Direct Labor-Hours Direct Labor- Hours per Unit 4.0 Annual Production 3,000 units Model N 800 XL Model N 500 12,000 11,000 unita22,000 34,000 2.0 Additional information about the company follows a. Model N 800 XL requires $85 in direct materials per unit, and Model N 500 requires $45. b. The direct labor wage rate is $20 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 Measure Estimated tivity Cost Pool Machine setups Special procensing General factory Overhead Cost $ 770,000 250,000 Direct labor-hours1,530,000 $2,550,000 Number of setups Machine-hours tivity Measure Number of setups Machine-hours Direct labor-hours Expected Activity 225 22,000 Model N 800 XL 11 Model N 500 Tota 125 350 20,000 12, 000 20,000 34,000 Required 1. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products a. Compute the predetermined overhead rate. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below Reg IA Req 18