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: Total Direct Labor- Direct Hours per Unit Annual Production Labor-Hours Model N 890 XL 2.5 6,000 units 15,000 Model N 500 1.2 12,500 units 15,000 30,000 Additional information about the company follows: a. Model N 800 XL requires $75 in direct materials per unit, and Model N 500 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 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: Estimated Activity Cost Pool Activity Measure Overhead Cost Machine setups Number of setups $ 450,000 Special processing Machine-hours 210,000 General factory Direct labor-hours 1,590,000 $ 2,250,000 Activity Measure Number of setups Machine-hours Direct labor-hours Model N 800 XL 210 17,500 15,000 Expected Activity Model N 500 290 @ 15,000 Total 500 17,500 30,000 Complete this question by entering your answers in the tabs below. Req 1A Req 1B 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.) Predetermined overhead rate per DLH 1 Req18 > Complete this question by entering your answers in the tabs below. Req 1A Req 18 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 Req 1A Complete this question by entering your answers in the tabs below. Req 241 Req 2A2 Reg 2B Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Machine setup Special processing General factory per setup per MH per DLH Req2A2 > Complete this question by entering your answers in the tabs below. Req 241 Req 2A2 Req 2B Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Model N 800 XL Model N 500 Overhead cost per unit Complete this question by entering your answers in the tabs below. Req 2A1 Req 2A2 Req 2B Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Compute the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places.) Model N 800 XL Model N 500 Unit product cost
