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Puget World, Incorporated, manufactures two models of television sets, the N800 XL model and the N500 model. Data regarding the two products follow: Additional information
Puget World, Incorporated, manufactures two models of television sets, the N800 XL model and the N500 model. Data regarding the two products follow: Additional information about the company follows: a. Model N 800 XL requires $75 in direct materials per unit, and Model N500 requires $30. b. The direct labor wage rate is $22 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800XL 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: Pequired: . Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. . Compute the predetermined overhead rate. . Compute the unit product cost of each model. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to the unit product cost of each model. (Round your answers to 2 decimal places.) 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 activit) based costing system. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decima 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 activit) based costing system. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to Determine the amount of overhead cost that would be assigned to each model using the activity-based ci (Round your intermediate calculations and final answers to 2 decimal places.) 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 activit) based costing system. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost tc the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
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