Q1) Precision Manufacturing Inc. makes two types of industrial component parts--the EX300 and the TX500. It annually produces 60,000 units of EX300 and 12,500 units of TX500. Information relating to the company's two product lines is shown below: (30 points) EX300 TX500 Total Direct materials $366,325 $162,550 $528,875 Direct labor. $120,000 $42,500 162,500 The company is implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Manufacturing Overhead Activity TX500 EX300 Total Activity Cost Pool ( and Activity Measure) Machining (machine-hours) Setups (setup hours). Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost. $198.250 150.000 100,250 60.125 $508,625 90,000 75 1 $120.000 62,500 300 1 $42,500 152,500 375 2 $162,500 a. b. Compute the activity rate for each activity cost pool, Using the activity rates, compute the overhead allocated to each product unit. c. Compute product cost for each product. Activity Activity Cost Pool Activity Measure Activity Rate EX300 Overhead Costs TX500 Overhead Costs Machining Setups Product-level General factory Total manufacturing overhead cost Unit MO