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EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 1 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $998.780 in manufacturing overhead costs and produce 15,000 units of Product W and 75,000 units of Product S during the current year. Unit cost for materials and direct labor are: Direct material Direct labor Product S Product W $ 21 $ 25 11 Required: a-1. Compute the predetermined overhead rate under the current method of allocation. a-2. Determine the unit product cost of each product for the current year. b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Activity Cost Pool Machine setups required Purchase orders issued Machine-hours required Maintenance requests issued Total Cost $ 496,080 50,024 246,540 206,136 $ 998,780 Product 1,450 540 7,090 Total Activity Product W 1,670 136 10,520 941 Total 3,120 676 17,610 1,636 695 Using the data above and an activity based costing approach, determine the unit product cost of each product for the current year. Unit Product Cost Products Product W Unit Product Cost .. .. Product S Product W P . mer