Siegel Company manufactures a product that is available in both a deluxe model and a regular model. The companyr has manufactured the regular model for years. The deluxe model was introduced several years ago to tap a new segment ofthe 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 laborhours. For the current year, the company has estimated that it will incur $6,008,900 in manufacturing overhead cost and produce 25,000 units ofthe deluxe model and 112,000 units of the regular model. The deluxe model requires 1.0 hours of direct labortime per unit, and the regular model requires 0.5 hour. Material and labor costs per unit are as follows: Model Deluxe Regular Direct materials 35 14-1 5 163 Direct labor $ 11 5 T 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 Eos't Pool Activity Measure Overhead Cost Purchasing Purchase orders issued $ 331,356 Processing Machinehours 4,646,666 Scrapfrework Scrapfrework orders issued 755,556 Shipping Number of shipments 332.1939 $5,666,966 Expected Act ivi1_:x Activity Measure Deluxe Regular Total Purchase orders issued 476 94-6 1,416 Machinehours 26, 266 36, 366 56, 566 Scrapfrework orders issued 575 466 1,635 Number of shipments 5,646 1.566 12,666 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. Using the predetermined overhead rate computed in 13 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.) _ Determine the predetermined overhead rate for each of the four activity cost pools. Purchasing _ per purchase order Compute the total amount of manufacturing overhead met that would be applied to each model using the activitybased absorpon costing system. After these tolals have been computed, determine the amount of manufacturing overhead oust per unit of each model. (Round your intermediate calculations and "Overhead oost per unit" answers to 2 decimal places.) Total overhead cost Overhead cost per unit Req 1A Req 1B Req 2 Req 3A Req 3B 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.) Model Deluxe Regular Direct materials Direct labor Manufacturing overhead Total unit product cost 0.00 0.00