Slegel Company manufactures a product that is avallable 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 5ystem. 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 has estimated that it will incur $5,658,225 in manufacturing overhead cost and produce 12,000 units of the deluxe model and 127,000 units of the regular model. The deluxe model requires 0.8 hours of direct labor time per unit, and the regular model requires 0.4 hout. Material and labor costs per unit are as follows: Required: 1.a. Using direct labor-hours as the bose for assigning manufacturing overtiead cost to products, compute the predetermined overhead rate. 16. Using the predetermined overhead rote computed in ha above and other data from the problem, determine the unit product cost of each model. 2. Monagement is considering using octivity based absorption costing to apply manufacturing overheod cost to products. The activity. based system would have the following four activity cost pools: 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, difect labor, and manufacturing overhead). Complete this question by entering your answers in the tabs below. 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.) 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 owerhead cost that would be opplied 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. Using the predetermined overhead rete computed in t-a above and onser data from the problem, determine the unit prostuct cost of each model. (Round your intermediate calculations and fral anwers to 2 decimal pases.) Complete this question by entering your answers in the tabs below. Determine the predetermined dvernead irate for each of the four sctivity cost poots. Complete this question by entering your answers in the tabs below. 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 overfead cost per unit of each model. (Round your inkermediate calculations and "Overhead cost per unit" answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. 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.)
