Sandstorm Manufacturing Inc. makes two types of industrial component partsthe LE100 and the UL600. It annually produces 67,000 units of LE100 and 13,200 units of UL600.The companys conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the companys two product lines is shown below: LE100 UL600 Total Direct materials $ 373,325 $ 169,550 $ 542,875 Direct labor $ 127,000 $ 46,000 $ 173,000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Cost Pool (and Activity Measure) Manufacturing Overhead Activity LE100 UL600 Total Machining (machine-hours) $ 195,600 97,000 66,000 163,000 Setups (setup hours) 225,600 110 370 480 Product-level (number of products) 156,620 1 1 2 General factory (direct labor dollars) 79,580 $ 127,000 $ 46,000 $ 173,000 Total manufacturing overhead cost $ 657,400

Sandstorm Manufacturing Inc. makes two types of industrial component parts-the LE100 and the UL600. It annually produces 67,000 units of LE100 and 13,200 units of UL600. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below LE100 UL600 Total Direct materials Direct labor $ 373,325 $169,550 $542,875 $127,000 $46,000 $173,000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below Activity Activity Cost Pool (and Activity Measure) Manufacturin Overhead LE100 UL600 Total Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) 5600 97,000 225,600 156,620 66,000163,000 480 2 $46,000 $173,000 110 370 79,580 127,000 657,400 Total manufacturing overhead cost per DLS Predetermined overhead rate 1-b. Using the plantwide rate, compute the unit product cost for each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.) LE100 UL600 Unit product cost 2-a. Compute the activity rate for each activity cost pool. (Round your Machining and General factory activity rates to 2 decimal places.) Activity Cost Pools Activity Rate Machining Setups Product-level General factory per MH per setup hr per product per DLS 2-b. Using the activity rates, compute the unit product cost for each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.) LE100 UL600