Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow Model 800 XL Model 500 Direct Labor- Bours per Unit 3.0 Annual Production: 2.500 units 12,500 units Total Dire Labor-Boure 7,500 17,500 25,000 Additional information about the company follows: a. Model N 800 XL requires $85 in direct materials per unit, and Model N 500 requires $40. b. The direct labor wage rate is $24 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 Cost Pool Machine setups Special processing General factory Activity Measure Bumber of setup Machine-hours Direct labor-bours Estimated Overhead Cost $470,000 220,000 1,435,000 $2,125,000 Activity Measure Sumber of setups Machine-hours Direct labor-hours Model N 800 XL Expected Activity Model N 500 Total 90 210 300 16,000 7,500 0 17.500 16,000 25,000 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. a(1) Compute the activity rate for each activity cost pool a(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