Reitler, Incorporated, manufactures and sells two products: Product A$2$ and Product N$7.$ Data concerning the expected production of

each product and the expected total direct labor$-$hours $($DLHs$)$ required to produce that output appear below:

The direct labor rate is $$26\mathrm{.}50$ per DLH$.$ The direct materials cost per unit for each product is given below:

The company is considering adopting an activity$-$based costing system with the following activity cost pools, activity measures, and

expected activity:

Required:

In all computations Involving dollars in the following requirements, round off your answer to the nearest whole cent.

a$.$ The company currently uses a traditional costing method in which overhead is applied to products based solely on direct labor$-$

hours. Compute the company's predetermined overhead rate under this costing method.

b$.$ How much overhead would be applied to each product under the company's traditional costing method?

c$.$ Determine the unit product cost of each product under the company's traditional costing method.

d$.$ Compute the activity rates under the activity$-$based costing system.

e$.$ Determine how much overhead would be assigned to each product under the activity$-$based costing system.

f$.$ Determine the unit product cost of each product under the activity$-$based costing method.