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 Model 500 Direct Labor- Hours per Unit Annual Production 3.0 1-4 2,500 units 12,500 unite Total Direct Labor-Hours 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 Special processing General factory Activity Ressure Number of setups Machine-hour Direct labor-hours Zatinated Overhead Coat $470,000 220,000 1,435,000 $ 2,125,000 Activity Measure Number of setups Machine-hours Direct labor-hours Expected Activity Model N 800 KL 90 Model 500 210 Total 300 16,000 7.500 16,000 17,500 25,000 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