Siegel Company manufactures a product that is available in both 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 ofthe deluxe model have been increasing rapidly. Manufacturing overhead is assigned to products on the basis of direct laborhours For the current year, the company has estimated that it will incur $4,889,250 in manufacturing overhead cost and produce 14,000 units of the deluxe model and 118,000 units ofthe regular model. The deluxe model requires 10 hours of direct labor time per unit, and the regular model requires 0.5 hour. Material and labor costs per unit are as follows: Model Deluxe Regular Direct materials $ 144 $ 118 Direct labor $ 14 $ 9 Required: 1a. Using direct laborhours as the base for assigning manufacturing overhead cost to products, compute the predetermined overhead rate. 1b. Using the predetermined overhead rate computed in 1a above and other data from the problem, determine the unit product cost of each model. 2. Management is considering using activitybased absorption costing to apply manufacturing overhead cost to products. The activity based system would have the following four activity cost pools: Estimated Activity Cost Pool Activity Measure Overhead Cost Purchasing Purchase orders issued $ 259,200 Processing Machinehours 2,475,000 Scrap or rework Scrap or rework orders issued 737,550 Shipping Number of shipments & $ 4,889,250 Expected Activity Activity Measure Deluxe Regular Total Purchase orders issued 360 720 1,080 Machinehou rs 19, 800 29 , 700 49, 500 Scrap/rework orders issued 550 440 990 Number of shipments 5,400 8,100 13,500 Determine the predetermined overhead rate for each of the four activity cost pools. Determine the predetermined overhead rate for each ofthe four activity cost pools. 3. Using the predetermined overhead rates you computed in part (2), do the following: 6. Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based absorption costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each model. b. Compute the unit product cost of each model (including direct materials, direct labor, and manufacturing overhead). Complete this question by entering your answers in the tabs below. Req 1A Req lB Req 2 Req 3A Req BB Using direct labor-hours as the base for assigning manufacturing overhead cost to products, compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate - per DLH Determine the predetermined overhead rate for each ofthe four activity cost pools. 3. Using the predetermined overhead rates you computed in part (2), do the following: a. Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based absorption costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each model. b. Compute the unit product cost of each model (including direct materials, direct labor, and manufacturing overhead). Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3A Req 3B Using the predetermined overhead rate computed in 1-a above and other data from the problem, determine the unit product cost of each model. (Round your intermediate calculations and nal answers to 2 decimal places.) Unit product cost __ Determine the predetermined overhead rate for each of the four activity cost pools. 3. Using the predetermined overhead rates you computed in part (2), do the following: a. Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based absorption costing system' After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each model; b. Compute the unit product cost of each model (including direct materials, direct labor, and manufacturing overhead). Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3A Req 3B Determine the predetermined overhead rate for each of the four activity cost pools. Purchasing - per purchase order Shipping _ per shipment Determine the predetermined overhead rate for each of the four activity cost pools. 3. Using the predetermined overhead rates you computed in part (2), do the following: a. Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based absorption costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each model. b. Compute the unit product cost of each model (including direct materials, direct labor, and manufacturing overhead). Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3B Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based absorption costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each model. (Round your intermediate calculations and "Overhead cost per unit'I answers to 2 decimal places.) Total overhead cost Overhead cost per unit Determine the predetermined overhead rate for each of the four activity cost pools. 3. Using the predetermined overhead rates you computed in part (2), do the following: a. Compute the total amount of manufacturing overhead cost that would be applied to each model using the activitybased absorption costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each model. b. Compute the unit product cost of each model (including direct materials, direct labor, and manufacturing overhead). Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3A Compute the unit product cost of each model (including direct materials, direct labor, and manufacturing overhead). (Round your intermediate calculations and final answers to 2 decimal places.) Direct materials Direct labor Manufacturing overhead Total unit product cost