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Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow:

	Direct Labor- Hours per Unit	Annual Production	Total Direct Labor-Hours
Model N 800 XL	3.0	2,500units	7,500
Model N 500	1.4	12,500 units	17,500
			25,000

Additional information about the company follows:

a.	Model N 800 XL requires $85 in direct materials per unit, and Model N 500 requires $40.
b.	The direct labor wage rate is $24 per hour.
c.	The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products.
d.	Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost
Machine setups	Number of setups	$	470,000
Special processing	Machine-hours		220,000
General factory	Direct labor-hours		1,435,000
		$	2,125,000

	Expected Activity
Activity Measure	Model N 800 XL	Model N 500	Total
Number of setups	90	210	300
Machine-hours	16,000	0	16,000
Direct labor-hours	7,500	17,500	25,000

4. value:

3.35 points Required information

2.

Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products.

a(1)	Compute the activity rate for each activity cost pool.(Round your answers to 2 decimal places.)

a(2)	Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system.(Round your answers to 2 decimal places.)

b.	Compute the unit product cost of each model.(Round your answers to 2 decimal places.)