Roman Corporation manufactures a product available in a deluxe model and a regular model. The company has manufactured the regular model for years. The deluxe model was introduced several years ago to tap a new segment of the market. Since introduction of the deluxe model, the company's profits have steadily declined and management has become increasingly concerned about the accuracy of its costing system. Sales of the deluxe model have been increasing rapidly. Manufacturing overhead is assigned to products on the basis of direct labor-hours. For the current year, the company estimated it will incur $5,507,100 in manufacturing overhead cost and produce 12,000 units of the deluxe model and 115,000 units of the regular model. The deluxe model requires 1.0 direct labor-hours per unit, and the regular model requires 0.5 direct labor-hour. Material and labor costs per unit are as follows: Direct materials Direct labor Required: Deluxe $ 160 $ 17 Model Regular $ 109 $ 12 1-a. Using direct labor-hours as the base for assigning manufacturing overhead cost to products, compute the predetermined overhead rate. 1-b. Determine the unit product cost of each model. 2. Management is considering using activity-based absorption costing to apply manufacturing overhead cost to products. The activity- based system would have four activity cost pools: Activity Cost Pool Purchasing Processing Scrap or rework Shipping Activity Measure Purchase orders issued Machine-hours Scrap or rework orders issued Number of shipments Estimated Overhead Cost $ 257,400 3,712,500 529,200 1,008,000 $ 5,507,100 Expected Activity Activity Measure Purchase orders issued Deluxe 440 Regular 880 Total 1,320 Machine-hours 19,800 29,700 49,500 Scrap or rework orders issued 400 320 Number of shipments 5,760 8,640 720 14,400 Calculate an activity rate for each of the four activity cost pools. 3. Using the activity rates from part (2): a. Compute the total manufacturing overhead cost applied to each model. Also, calculate each model's manufacturing overhead cost per unit. b. Compute each model's unit product cost (including direct materials, direct labor, and manufacturing overhead). Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Required 3A Required 3B Using direct labor-hours as the base for assigning manufacturing overhead cost to products, compute the predetermined overhead rate. Note: Round your answer to 2 decimal places. Predetermined overhead rate per DLH