recision Manufacturing Inc. (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 4,000 units of EX300 and 12,900 units of TX500. The company's conventional cost system allocates manufacturing overhead to roducts using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the ompany's two product lines is shown below: TX500 $370,325 $166,550 $536,875 $124,000 44,500 $168,500 EX300 Total Direct materials Direct labor he company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four ctivities as shown below: Activity Cost Pool (and Activity Measure) ManufacturingActivity Overhead $237,756e 191,400 89,830 TX500 64,500 340 Total EX300 94,000 Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory(direct labor dollars) Total manufacturing overhead cost 158,500 435 2 $168,500 95 70,770 $124,e00 $44,500 $589,750 equired a. Compute the plantwide overhead rate that would be used in the company's conventional cost system b. Using the plantwide rate, compute the unit product cost for each product. -a. Compute the activity rate for each activity cost pool -b. Using the activity rates, compute the unit product cost for each product. Complete this question by entering your answers in the tabs below. Required information The following information applies to the questions displayed below For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours. Despite the growing popularity of the company's new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows Direct materials Direct labor (0.20 hours and 0.60 hours@ $15.00 per hour) LEC 40LEC 90 30.00 48.00 $3.00 $9.00 Management estimates that the company will incur $816,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold. equired . Compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on the sis of direct labor-hours . Using this rate and other data from the problem, determine the unit product cost of each product Management estimates that the company will incur $816,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold. Required 1-a. Compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on the basis of direct labor-hours. 1-b. Using this rate and other data from the problem, determine the unit product cost of each product. Complete this question by entering your answers in the tabs below Req 1A Req 18 Compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on the basis of direct labor-hours. (Round your answer to 2 decimal places. Predetermined overhead rate per DLH Req 1A Req 1B> The following intormation applies to the questions displayed below. For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours. Despite the growing popularity of the company's new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows Direct materials Direct labor (0.20 hours and 0.60 hours$15.00 per hour) LEC 40 LEC 90 30.00 48.00 3.00 9.00 Management estimates that the company will incur $816,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold Management is considering using activity-based costing to assign manufacturing overhead cost to products. The activity-based sting system would have the following four activity cost pools: Estimated Overhead Cost Activity Cost Pool Maintaining parts inventory Processing purchase orders Quality control Machine-related Activity Measure Number of part types Number of purchase orders Number of tests run Machine-hours $ 150,00e 140,000 51,000 475,000 $ 816,000 . Management is considering using activity-based costing to assign manufacturing overhead cost to products. The activity-t osting system would have the following four activity cost pools Estimated Overhead Cost Activity Cost Pool Maintaining parts inventory Processing purchase orders Quality control Machine-related Activity Measure Number of part types Number of purchase orders Number of tests run Machine-hours $ 150,000 140,000 51,000 475,000 $816,000 Expected Activ it Activity Measure Number of part types Number of purchase orders Number of tests run Machine-hours LEC 40 550 1,300 1,000 4,000 LEC 90 950 700 1,550 6,000 Total 1,500 2,000 2,550 10,000 etermine the activity rate for each of the four activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Maintaining inventory Processing purchase orders Quality control Machine-related per part type per order per test per MH Required information The following information applies to the questions displayed below. For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours Despite the growing popularity of the company's new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows Direct materials Direct labor (8.20 hours and .60 hours @ $15.00 per hour) LEC 40 LEC 90 30.00 48.00 $3.00 9.00 Management estimates that the company will incur $816,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold. . Using the activity rates you computed in part (2), do the following: Determine the per unit amount of manufacturing overhead cost that would be assigned to each product using the activity-based osting system. .Compute the unit product cost of each product. Management estimates that the company will incur $816.000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold Using the activity rates you computed in part (2), do the following: a. Determine the per unit amount of manufacturing overhead cost that would be assigned to each product using the activity-based costing system. b. Compute the unit product cost of each product. Complete this question by entering your answers in the tabs below Req 3A Req 3B Using the activity rates you computed in part (2), determine the per unit amount of manufacturing overhead cost that would be assigned to each product using the activity-based costing system. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Manufacturing overhead per unit of LEC 40 Manufacturing overhead per unit of LEC 90 recision Manufacturing Inc. (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 4,000 units of EX300 and 12,900 units of TX500. The company's conventional cost system allocates manufacturing overhead to roducts using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the ompany's two product lines is shown below: TX500 $370,325 $166,550 $536,875 $124,000 44,500 $168,500 EX300 Total Direct materials Direct labor he company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four ctivities as shown below: Activity Cost Pool (and Activity Measure) ManufacturingActivity Overhead $237,756e 191,400 89,830 TX500 64,500 340 Total EX300 94,000 Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory(direct labor dollars) Total manufacturing overhead cost 158,500 435 2 $168,500 95 70,770 $124,e00 $44,500 $589,750 equired a. Compute the plantwide overhead rate that would be used in the company's conventional cost system b. Using the plantwide rate, compute the unit product cost for each product. -a. Compute the activity rate for each activity cost pool -b. Using the activity rates, compute the unit product cost for each product. Complete this question by entering your answers in the tabs below. Required information The following information applies to the questions displayed below For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours. Despite the growing popularity of the company's new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows Direct materials Direct labor (0.20 hours and 0.60 hours@ $15.00 per hour) LEC 40LEC 90 30.00 48.00 $3.00 $9.00 Management estimates that the company will incur $816,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold. equired . Compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on the sis of direct labor-hours . Using this rate and other data from the problem, determine the unit product cost of each product Management estimates that the company will incur $816,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold. Required 1-a. Compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on the basis of direct labor-hours. 1-b. Using this rate and other data from the problem, determine the unit product cost of each product. Complete this question by entering your answers in the tabs below Req 1A Req 18 Compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on the basis of direct labor-hours. (Round your answer to 2 decimal places. Predetermined overhead rate per DLH Req 1A Req 1B> The following intormation applies to the questions displayed below. For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours. Despite the growing popularity of the company's new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows Direct materials Direct labor (0.20 hours and 0.60 hours$15.00 per hour) LEC 40 LEC 90 30.00 48.00 3.00 9.00 Management estimates that the company will incur $816,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold Management is considering using activity-based costing to assign manufacturing overhead cost to products. The activity-based sting system would have the following four activity cost pools: Estimated Overhead Cost Activity Cost Pool Maintaining parts inventory Processing purchase orders Quality control Machine-related Activity Measure Number of part types Number of purchase orders Number of tests run Machine-hours $ 150,00e 140,000 51,000 475,000 $ 816,000 . Management is considering using activity-based costing to assign manufacturing overhead cost to products. The activity-t osting system would have the following four activity cost pools Estimated Overhead Cost Activity Cost Pool Maintaining parts inventory Processing purchase orders Quality control Machine-related Activity Measure Number of part types Number of purchase orders Number of tests run Machine-hours $ 150,000 140,000 51,000 475,000 $816,000 Expected Activ it Activity Measure Number of part types Number of purchase orders Number of tests run Machine-hours LEC 40 550 1,300 1,000 4,000 LEC 90 950 700 1,550 6,000 Total 1,500 2,000 2,550 10,000 etermine the activity rate for each of the four activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Maintaining inventory Processing purchase orders Quality control Machine-related per part type per order per test per MH Required information The following information applies to the questions displayed below. For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours Despite the growing popularity of the company's new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows Direct materials Direct labor (8.20 hours and .60 hours @ $15.00 per hour) LEC 40 LEC 90 30.00 48.00 $3.00 9.00 Management estimates that the company will incur $816,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold. . Using the activity rates you computed in part (2), do the following: Determine the per unit amount of manufacturing overhead cost that would be assigned to each product using the activity-based osting system. .Compute the unit product cost of each product. Management estimates that the company will incur $816.000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold Using the activity rates you computed in part (2), do the following: a. Determine the per unit amount of manufacturing overhead cost that would be assigned to each product using the activity-based costing system. b. Compute the unit product cost of each product. Complete this question by entering your answers in the tabs below Req 3A Req 3B Using the activity rates you computed in part (2), determine the per unit amount of manufacturing overhead cost that would be assigned to each product using the activity-based costing system. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Manufacturing overhead per unit of LEC 40 Manufacturing overhead per unit of LEC 90