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 10,000 units 3.5 Model N 800 XL Model N 500 7,000 1.3 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 Machine setups Number of setups $ 370,000 Special processing Machine-hours 170,000 General factory Direct labor- 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 7,000 13,000 Total 370 17,000 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. Complete this question by entering your answers in the tabs below. Reg 2A1 Req 2A2 Req 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 per setup Special processing General factory per MH per DLH 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.) Show less Model N 800 Model N XL 500 Unit product cost