Puget World, Incorporated, manufactures two models of television sets, the $N800xL$ model and the $N500$ model. Data

regarding the two products follow:

Additional information about the company follows:

a$.$ Model $N800L$ requires $$60$ in direct materials per unit, and Model N $500$ requires $$15.$

b$.$ The direct labor wage rate is $$19$ 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:

Additional information about the company follows:

a$.$ Model N $800$ XL requires $$60$ in direct materials per unit, and Model N $500$ requires $$15.$

b$.$ The direct labor wage rate is $$19$ per hour.

c$.$ The company has always used direct labor$-$hours as the base for applying manufacturing overhead cost to products.

d$.$ Model N $800L$ 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:

Required:

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.