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 Model N 800 XL 3.0 2,500 units 7,500 Model N 500 1.0 11,000 units 11,000 18,500 Additional information about the company follows: a. Model N 800 XL requires $75 in direct materials per unit, and Model N 500 requires $25. b. The direct labor wage rate is $15 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 Measure Overhead Cost Machine setups Number of setups $ 380,000 Special processing Machine-hours 175,000 General factory Direct labor-hours 925,800 $1,488,800 Activity Measure Number of setups Machine-hours Direct labor-hours Model N 800 XL 160 17,500 7,500 Expected Activity Model N 500 220 @ 11,000 Total 380 17,500 18,500 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 1 Reg 18 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) Prodotermined overhead rato per DLH Model N 800 XL Model N 500 Direct Labor- Hours per Unit 3.0 1.e Annual Production 2,500 units 11,000 units Total Direct Labor-Hours 7,500 11,000 18,500 Additional information about the company follows: a. Model N 800 XL requires $75 in direct materials per unit, and Model N 500 requires $25. b. The direct labor wage rate is $15 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 Measure Overhead Cost Machine setups Number of setups $ 380,880 Special processing Machine-hours 175,000 General factory Direct labor-hours 925,000 $ 1,480,000 Activity Measure Number of setups Machine-hours Direct labor-hours Model N BOV XL 160 17,500 7,500 Expected Activity Model N500 220 0 11,000 Total 380 17,500 18,500 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 1A Reg 13 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
