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: Direct Labor- Hours per Unit Total Direct Labor- Hours Annual Production 2,000 units 3.5 Model N 800 XL Model N 500 1.3 10,000 units 7,000 13,000 20,000 Additional information about the company follows: a. Model N 800 XL requires $70 in direct materials per unit, and Model N 500 requires $20. b. The direct labor wage rate is $14 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 Overhead Activity Cost Pool Activity Measure Cost Number of Machine setups $ 370,000 setups Special processing Machine-hours 170,000 Direct labor- General factory hours 1,260,000 $ 1,800,000 Activity Measure Number of setups Machine-hours Direct labor- hours Expected Activity Model N 800 XL Model N 500 165 205 17,000 0 Total 370 17,000 7,000 13,000 20,000 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. 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. 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 $ 90.00 per DLH 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 unit product cost of each model. (Round your answers to 2 decimal places.) Model N 800 XL Model N 500